HARARE – Zimbabwe Stock Exchange-listed hotel group – African Sun Limited (ASL) has recorded a half yearly $190,000 net profit as it continues to turn around its fortunes.
ASL chairman Herbert Nkala attributed the change of fortune from a $560,000 loss recorded over the first half of last year to an eight percent occupancy increase over the same period and cost management initiatives.
During the period, occupancy was at 45 percent up from 37 percent in prior year same period.
Its borrowings went down to $7,3 million from $8,3 million in the previous period.
This comes as a direct result of ASL’s change of business model that has seen it discontinuing loss-making entities and contracting other hotel groups to manage some of its properties.
ASL’s projections were looking good going into the second half of the year as it is the hospitality industry’s peak trading season.
The hotel group has been on a turn-around drive that has seen it closing its loss-making Beitbridge Express Hotel. It was leasing the building from was being leased to by Dawn Properties.
In 2015 it contracted Legacy Hotels of South Africa to manage Elephant Hills, Kingdom Hotel, Monomotapa, Hwange Safari Lodge and Troutbeck Inn.
It also cut off loss-making operations in Ghana and Nigeria in the same year.
Nkala said he expected the expansion of the Victoria Falls airport which has increased potential arrivals to the destination by 40 percent to also boost their income.