Cresta Marakanelo said its Jwaneng and Cresta Marang operations have contributed to the group’s topline, as stated in the latest financial results. The Botswana Stock Exchange (BSE) listed hotelier’s full year results for the period ended 31 December 2014 showed it grew revenues by 7.9 percent from P281 million on the prior year to P303.2 million.
According to a statement accompanying the results, the two hotels contributed 4.8 percent to the company.
“Cresta Jwaneng, which has now operated for its first full year as a Cresta hotel, and Cresta Marang, which was subject to significant refurbishment during the 2013 financial year, contributed a further 4.8percent to overall revenue growth for the company,” stated the company.
The hotelier bought Cezar Hotel in the mining town of Jwaneng and rebranded the facility to Cresta Jwaneng Hotel in a bid to tap into the market in the area and target traffic using the Trans Kalahari Highway. On the other hand, the upgrading of Cresta Marang Gardens cost P5.5 million.
The company said total assets rose by 6.6 percent from P215 million in full year 2013 to P229 million. However, it added that the P65 million reduction in carrying value of property, plant and equipment over the financial year reflects from a disposal of assets with net book values of P1.76 million, depreciation of P23.5 million and additions of P19.1 million.
“Most significant additions resulted from the refurbishment of the Cresta Rileys and Cresta Marang Gardens,” the statement noted.
Founded in 1974, Cresta, initially BDC Hotel Management, has big names under its arm 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.
The hotelier has continued to explore new opportunities in a bid to unlock shareholder value and increase returns. Recently, Cresta entered into a 10 year lease agreement with a landlord, Rainet Safaris (Pty) Ltd to lease their new 83 roomed hotel and conference centre to be built in Maun, Botswana’s tourism hotspot.
“This hotel is expected to be ready in 24 months. The lease agreement is also renewable for a further 10 years at the expiry of the initial lease term”.
Additionally, Cresta has admitted that Cresta Golfview operates under tough environment following reductions in conference by international donor organisations and government that affected the Zambian operations.
“The impact of this on Cresta Golfview has been exacerbated through increased competitor activity from regional and international hotel brands in Lusaka,” the hotelier revealed.