Hospitality’s earnings drop as hotel, resort room occupancy down
The earnings for the Tsogo Sun gaming and leisure group subsidiary excluded an R11million settlement that it had to make for a shareholder appraisal rights matter. The distribution per share came to 35.40 cents.
Room occupancy in the first six months for the group’s 54 hotels increased marginally by 0.2percent to 60.4percent, while the market experienced a marginal increase in occupancy of 0.5percent to 60.1percent.
Hotel trading was expected to remain under pressure until the outlook on the South African economy improves, directors said.
Gearing was low at 19percent. Rental income decreased 3percent to R335m, mainly due to weaker trading at Birchwood Hotel and OR Tambo Conference Centre, and utility costs in the hotels increasing above inflation.
Source: iol.co.za