DAWN Properties says the partnership between African Sun Limited (ASL) and Legacy Hotels Group will boost the hotel lease revenue.
BY BUSINESS REPORTER
In September, ASL signed an agreement with Legacy Hotels, in which the South African company would manage four prime hotels on behalf of ASL. The hotels to be managed by Legacy Hotels are Elephant Hills Hotel, Crowne Plaza Monomotapa Hotel, Hwange Safari Lodge and Troutbeck Inn Hotel.
In a statement accompanying Dawn’s financial results for the six months ended September 30, board chairperson Phibeon Gwatidzo said the company supports the establishment of a management contract between ASL and Legacy.
“This is expected to boost the hotel lease revenues in a significant manner in the years ahead,” he said.
During the period under review, hotel lease segment generated $1,2 million of the $2,3m total revenue for the period. Property consultancy business generated the remainder ($1,1m).
Gwatidzo said the company was diversifying its revenue streams and a total of 58 residential units are expected to be delivered from the Marlborough-Harare land bank within the next financial year.
“The company is currently exploring a business model that leverages on the company’s balance sheet to create and unlock value, as well as sustainably managing the business in a very cost-effective manner,” Gwatidzo said.
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In the period under review, Dawn’s revenue was 14% lower than the previous year. Gwatidzo said revenue reduction was reflective “of the pervasive challenging macro-economic environment”.
