African Sun Limited posted a 68 percent jump in revenues in the year to December 31, 2019 on the back of inflation-adjusted gains on average daily rate (ADR).

The hotelier’s inflation adjusted revenue for the year ended December 31, 2019 stood at $914 million; a 68 percent growth from prior year largely driven by the average daily rate (ADR).

ADR grew by 102 percent from $869 recorded last year to $1 759 as the hotels continued to align room rates with interbank exchange rate during the year.

Occupancy for the year closed at 48 percent, compared to 59 percent recorded in 2018.

African Sun posted inflation adjusted EBITDA of $387, 94 million, which was 187 percent above last year mainly in response to inflation pressure.

Management reported that net financing costs for the year amounted to $8, 8 million, an 83 percent increase from $4, 8 million reported last year, which they attributed to lease liabilities as finance costs on borrowings decreased by 93 percent.

Inflation adjusted profit before income tax for the year amounted to $338, 01 million; a 302 percent growth from $83, 89 million reported in the prior year.

Profit for the year stood at $187, 04 million, a growth of 227 percent from 2018’s profit of $57, 21 million.

Going forward African Sun expects the second half of 2020 to provide a better operating environment compared to the first half.

Said chairman Alex Makamure in a statement accompanying the results:

“The second half is forecasted to have better performance as the pandemic is expected to be under control on the back of lockdowns and isolation measures.

“Despite the potential impact of the Covid-19, we expect the general travel outlook in the second half of the year to be somewhat positive and it should dilute the losses of the first half.”

The group did not pay a dividend for the period.