Sunbird Hotels and Resorts says business prospects in the hospitality sector could be haunted by Coronavirus outbreak and the country’s political impasse among other threats.
In its financial statement for the year ended 31st December 2019, the firm says the two factors would have a negative impact on economic activities, thereby compromising growth prospects.
“The Covid-19 pandemic that has now spread all over the world has affected travel patterns for both corporate and leisure and resulting in significant reduction in travel in the country, depressing the tourism sector.
“There is usually uncertainty during the election year on possible policy changes and how the macrocosmic factors and environment would play out which results in a wait-and-see attitude,” reads the statement.
In the statement, the hospitality unit announced a K2.595 billion profit after tax for the period under review from K2.562 billion recorded in the preceding year.
Total finance cost amounted to K229 million in 2019 compared to K398 million in 2018.
Administration and other expenses increased by 4 percent in the year under review from K11.1 billion to K11.5 billion.
The group registered a 52 percent occupancy levels compared to 57 percent achieved for the same period in 2018.
Meanwhile, the Sunbird board has resolved to pay K131 million (or 50 tambala per share) a final dividend to make the total dividend paid for 2019 as K262 million (or K1 per share).
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.