Mixed fortunes for hospitality industry
Statements from two hospitality units listed on the Malawi Stock Exchange show mixed performance in the sector for the year ending December 31 2022.
Sunbird Hotels and Resorts announced that it expects its profits to be 240 percent more than what it posted at the same time last year.
During the period ending December 31, 2021 Sunbird Hotels and Resorts made a profit after tax of K749.4 million from a loss of K1.2 billion in 2020.
Another listed firm, BHL, says it expects a 20 percent drop in the loss made last year.
“The group is projecting a profit before interest and tax from hotel operations, whilst the loss after tax will arise due to the increase in finance costs incurred on the Lilongwe project,” reads the BHL statement.
BHL registered a loss of K484 million during the first half of this year, which was an improvement from last year’s K599 million during the same period.
In its 2022 assessment of the business environment, Malawi Confederation of Chambers of Commerce and Industry says overall, 2023 may also turn out to be a difficult year for businesses depending on the pathway on policy implementation.
“Overall, most of the economic risks which were in 2022 are likely to continue in 2023. The recovery of the economy is likely to depend on mitigation measures that will be put in place to counter these economic risks,” reads the assessment.
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.
