Listed hospitality firm TPS Eastern Africa and operator of Serena Hotels has registered a Net loss of KSh 640.9 Million for the half-year period ended 30th June 2020.
Serena is among players in the hotel and leisure business who have suffered the disruptive effects of the global coronavirus pandemic. The chain was forced to temporarily shut down its properties in March this year.
In the six months ended 30th June 2020, its revenue fell to KSh 1.1 Billion from KSh 2.7 Billion at the end of the first half of 2019. The listed firm suffered an exchange loss on its foreign currency loans of KSh 149.5 Million from a loss of KSh 18.4 Million.
It made an operating loss of KSh 326.3 Million compared to an operating profit of KSh 124.2 Million in the same period in 2019. While the hotel chain had undertaken refurbishment of its prime properties in Nairobi, Kampala and Dar es Salaam, TPS said it has lost business opportunities and revenue that this undertaking would have generated in 2020.
With the easing of lockdowns in East Africa, Serena properties are currently accepting bookings at its properties in Dar es Salaam, Arusha, Lake Manyara Serena, Ngorongoro Serena, Serengeti Serena and Zanzibar Serena. In Kenya, the chain is open for business at Sweetwaters Serena Camp, Mara Serena and Nairobi Serena.
TPS has also opened bookings at Kampala Serena, Lake Victoria Serena Golf Resort&Spa as well as Kigali Serena and Lake Kivu Serena. With rising optimism, the chain plans to increase its regional footprint by opening Goma Serena Hotel in the Democratic Republic of Congo(DRC) under a management agreement.
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This transaction is planned to take place during the last quarter of 2020.
“The hospitality industry is expected to achieve a ‘new normal’ with local and corporate business most likely to be the first to recover. This will be followed by the meetings and leisure segments,” said Dominic Ng’ang’a, TPS Company Secretary.
He added that International and the regional market will only materialize as and when flights resume fully and restrictions on all inbound and outbound travellers, are eased.
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