Blantyre Hotels Limited has registered a loss of K484 million during the first half of this year compared to the K599 million loss posted during the same period last year.
This has been disclosed in the hospitality group’s annual financial statement published in the local press Monday.
According to the statement, although the group performed well in some aspects such as revenue and occupancy levels, this was not enough to offset operating and investment costs the group incurred.
It indicates that the group’s revenue for the half year was K1.39 billion, which was 45 percent higher than the revenue realised in the same period last year while hotel occupancy averaged 42 percent in the period compared to 19 percent in the previous period.
The increase in revenue has been attributed to the increase in occupancy levels as well as average daily rate but cost of sales increased by 2 percent from K600 million to K617 million and selling expenses increased by 4 percent from K716 million to K748 million.
“The group incurred net finance charges of K475 million during the period attributable to loan facilities obtained for the Lilongwe hotel project. The Group, therefore, registered a loss of K484 million (2021: K599 million),” the statement reads.
The report adds that the development has seen the group not declaring any dividends to its shareholders.
However, the hospitality and tourism player is optimistic that the second half of the year looks promising, with occupancy levels expected to continue improving.
“The hotel is committed to its strategy of driving operational excellence while personalising guest experience through the unrivalled Marriott Bonvoy rewards loyalty programme which drives business growth and drives profitability,” the financial statement reads.
The group has become the second company to register a loss from 16 counters listed on the local stock exchange, the first being telecommunications and mobile money service provider TNM.
At the peak of the Covid pandemic, the hospitality and tourism sector was the hardest hit as the pandemic forced the government to restrict travelling and large gatherings.
The sector, however, has been picking up at the back of the slowing down of new cases.
Blantyre Hotels Limited has hospitality facilities such as Ryalls Hotel in Blantyre.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
He is however flexible as he also writes about current affairs and national issues.