In 2018, TPS Eastern Africa booked an improvement in its hotel business which saw the firm’s annual revenues grow by 3 per cent from KSh6.4 billion to KSh6.6 billion. The results are in line with the recently released economic data that shows that Kenya’s international visitor numbers jumped up by 14 per cent between 2017 and 2018.
The firm’s net profit rose by 49.8 percent to hit KSh179 million from KSh119.5 million earned in 2017. The company which runs Serena hotels in Kenya, Tanzania, Uganda and Rwanda, embarked on an aggressive refurbishment program in 2017 and it is still ongoing. The exercise has led to higher income collection from the Hotels.
TPS managed to grow its earnings in a harsh environment that saw most companies book losses. Despite fierce competition, unfavorable government regulations, terror threats, high energy costs, and volatile exchange rates, the hotel chain registered good financial performance.
Due to the redevelopment project on its facilities, the value of its long term assets increased from KSh14.8 billion to KSh15.5 billion.
The firm is confident about improved results in 2019 due to the growing demand for luxury hotels in the region. “The Group continues to effectively risk manage its business strategy and thereby maintain the focus on mitigating risks, and capitalize on its brand strength to optimize portfolio performance in 2019…” read a statement from the company.
TPS Eastern Africa directors recommend a final dividend payout of KSh0.35 per share similar to the 2017 payout. The matter will be discussed during the AGM to be held on 25th June 2019 at the Kenyatta International Convention Centre.
