- Registers P19.2m net profit after tax (2021: P40m loss)
- Occupancies and average daily rates increase across Group’s hotels
- Expansion and refurbishment projects underway
For the financial year ending 31 December 2022, Cresta Marakanelo Limited says it achieved a net profit after tax of P19.2 million as it recovered from the P40 million loss made in 2021 due to disruptions caused by the COVID-19 pandemic in the travel and hospitality industry.
The Group says it started observing improved business levels towards the end of 2021 and into early 2022 with improved occupancies and positive returns, 2022 being the first year that it has made a profit since the start of the pandemic in 2020.
Says Cresta Marakanelo in its consolidated financial results for the year ended 31 December 2022: “There was no significant rise in new COVID-19 cases during the year under review, with vaccinations being availed worldwide. “This resulted in relaxing the COVID-19 restrictions, which included travel bans, alcohol sale bans, and restrictions on gatherings. “An improvement in business levels was noted with occupancies increasing across the hotels. The Group also noted a rise in international tour series business inflow at the key tourism properties,” According to the hospitality Group, with the adverse operating conditions for the industry improved, the business registered some wins.
“The Group’s full-year profit before tax of P21.7 million was P74.5 million higher than the same period last year, which reported a loss before tax of P52.9 million,” it says in the report. “Occupancies and average daily rates improved across all the hotels driven by increased conferencing levels and regional and international guest arrivals, leading to a 64 percent increase in revenue.”
With the future of the hospitality and tourism sector in Botswana in mind, the reports notes that Cresta Marakanelo is prioritising execution of its expansion projects as a critical path to success for the year. It notes that one such project is the 60-room extension of Cresta Mahalapye Hotel, which is scheduled for completion during the third quarter of 2023.
“We have signed a lease to develop a 50-roomed boutique hotel in Jwaneng,” says the reports. “Construction for Cresta Jwaneng Boutique Hotel commenced in November 2022, with completion scheduled for February 2024. The Group says it will continue searching for ways to digitalise operations and service provision, as well as enable departments to enhance efficiency and effectiveness. With inflationary pressure across all cost lines, the management of Cresta Marakanelo says it will continue to keep a watchful eye on costs and find ways to rationalise them further.