Sunday, May 26, 2024

Cresta reports rise in revenues, assets

Cresta Marakanelo, the Botswana Stock Exchange (BSE) listed hotel group, has registered a rise in assets following new investments and continues to increase its top line as seen in its latest financial results.

The group’s half year results for the period ended 31 June 2013 showed the company grew its revenues by 19 percent partly because of the rise in bed night and new editions to the group.

The group revenues went up from P108.7 million in the corresponding period to P128.9 million and recorded a profit after tax of P7.4 million compared to P3.7 million seen in 2012 period.

“Average room rates achieved were P786 per bed night (2012: P742 per bed night), with occupancies averaging 58 percent (2012: 56 percent. Revenue per available room achieved was P400 for the period under review compared to P373 for the comparable period in 2012,” Cresta said in a statement accompanying the financial results.

Cresta also grew its total assets by 16.5 percent as the company added new hotels to its name including Cezar Hotel in Jwaneng which was bought and rebranded Cresta Jwaneng Hotel. Cresta also opened the Mahalapye hotel, which contributed P5 million to the company and group revenues.

The assets grew from P184 million to as at 31 December, 2012 to P197 million as at June 2013 following new investment and upgrading of Cresta Marang Gardens for P5.5 million.

“After taking account of cost of sales and administration and operating costs, the group achieved an operating profit of P11 million translating to an operating margin of 8.6 percent for the period under review compared to 5.8 percent for the corresponding period”.

Cresta said it will continue to scout for opportunities as it looks to increase its market share and make shareholders happy. “The group continues to explore new markets in an endeavor to increase revenues by regularly evaluating opportunities for new hotel business both in and outside the country,” the company said. “Such expansion plans continue to be considered within the ambit of the group’s overall growth strategy and sound commercial terms”.

Cresta has already entered the Zambian market following the acquisition of the 78-roomed Golfview Hotel Ltd in Zambia for P20 million last year, which boosted the group revenues.

Founded in 1974, Cresta, initially BDC Hotel Management, has big names like Cresta Lodge, President Hotel, Botsalo Hotel, Bosele Hotel, Marang Gardens and Hotel, President Hotel, Riley’s Hotel, and Cresta Mowana Safari Lodge under its arm.


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