Tsogo Sun Hotels still only 50% of rooms occupied before the pandemic

For the hospitality industry in particular, ease and affordability of travel is of paramount importance, as is the safety and confidence of tourists.

  • Tsogo Sun Hotels has published its unaudited interim results for the six-month period ended at the end of September.
  • It says occupancy rates and rooms sold are still well below pre-pandemic levels.
  • No interim cash dividends have been declared.

Tsogo Sun Hotels is still only trading at 50% of rooms sold before the Covid-19 pandemic and occupancy rates are still well below the group’s long-term average, the group said in a statement Wednesday.

Its portfolio includes the Palazzo in Montecasino, the Sandton Sun in Gauteng, the Beverly Hills in Umhlanga, the Southern Sun The Cullinan in Cape Town and the Arabella Hotel, Golf & Spa near Hermanus.

Tsogo Sun Hotels reports that its unaudited interim results for the six-month period ended September 30, 2021 show occupancy rates over the period to be 21%.

The EBITDA (earnings before interest, taxes, depreciation, amortization and restructuring or rent costs) was R145 million. There was an overall basic and diluted loss per share of 10.9 cents from 40.5c over the same period in 2020. Net debt was held at R3 billion and cash at R1. 3 billion rand. No interim cash dividends have been declared.

“While we are encouraged by the recent upward trend in trade, it is clear that Covid-19 will stay with us for the foreseeable future and the only way to get back to some form of normalcy is to ensure that the majority of South African adults population is vaccinated, ”the group said in the statement.

“For the hospitality industry in particular, ease and affordability of travel is of paramount importance, as is the safety and confidence of tourists once they reach our shores and stay at our hotels.”

At the same time, he warns that “unnecessary” regulations and travel restrictions are an obstacle to the group’s recovery. In his opinion, any fully vaccinated adult should be allowed to travel abroad. The group also encourages its employees to be vaccinated and maintains the Covid-19 protocols in all of its properties.

Until important business and international travel market segments recover, Tsogo Sun said he will continue to focus on preserving cash and liquidity to enable him to continue trading during the pandemic. .

As of late Wednesday morning, shares of Tsogo Sun were trading up 0.93% to Rand 3.25.

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