Emmerson Njanjamangezi, Group Features Editor 
AFRICAN Sun (Afsun) is lining up a US$10 million investment for hotel refurbishments in anticipation of improved tourism activity this year.
In a trading update for the first quarter to March 31, 2022, the hotelier said it was optimistic that room occupancy will maintain an upward trajectory, driven predominantly by the domestic market in the short to medium term.
“The group will be undertaking refurbishment works at some of its hotels during the current year. Major refurbishment work is currently underway at the Troutbeck Resort, whilst preparatory work for similar refurbishment at Hwange Safari Lodge has commenced,” Afsun said.
“The group anticipates investing an estimated US$10 million in refurbishments, soft furnishings and other ancillary development at its hotels during the current financial year.”
Afsun said whilst the Asian market is lagging behind in terms of recovery, other parts of the world have opened up for international travel, with Covid-19 restrictions curtailed quite remarkably.
For the three months ended March 31, 2022, Afsun’s occupancy levels were consistently better compared to the same period in 2019, the latter year being the last normal trading year before the Covid-19 outbreak. The hospitality segment contributed 94 percent to group revenue, whilst the real estate segment contributed six percent.
Hotel revenue increased by 221 percent, largely driven by conference business during the period. City hotels (including the Troutbeck Resort) recorded 56 percent from 24 percent the prior year occupancies whilst the resort hotels, which have not fully recovered from the impact of Covid-19, achieved an occupancy level of 21 percent from five percent the prior year. The group’s total assets as of March 31, 2022 remained relatively flat at $26,4 billion compared with the December 2021 position.
Afsun closed the first quarter with a debt-free position, buttressed by a healthy cash and cash equivalents position of $1,55 billion.
Subsequent to March 31, 2022, the group paid a dividend of $116,151,461 plus US$505,064 with respect to the year ended December 31, 2021. Equity at $22,3 billion remained flat compared to the December 2021 position.
