TPS East Africa #ticker:TPSE , the parent firm of the Serena group of hotels, narrowed its losses by 10.69 per cent in the six months to June 2018 as sales rose marginally.
The NSE-listed company, a major operator in the hospitality sector across Eastern Africa, saw its net loss drop to Sh168.6 million in the first six months of 2018 compared to Sh188.7 million in the same period last year.
Sales increased by 2.41 per cent to Sh2.68 billion in the period from Sh2.62 billion the previous period on what TPS attributed to slow recovery of the foreign leisure tourism segment after the political environment stabilised in Kenya following protracted electioneering.
“During the first half of 2018, the foreign leisure tourism segment in East Africa witnessed a slow but encouraging growth in business levels compared to last year,” the firm said in a statement yesterday.
“The company’s diversified portfolio in East Africa recorded satisfactory growth in the corporate and domestic leisure segments, particularly during the second quarter of 2018 after the political environment in Kenya stabilised.”
The hotel chain said the refurbishment of its Nairobi Serena Hotel, expected to conclude this month, would boost its business adding that the already concluded upgrade of Kampala Serena Hotel and Dar es Salaam Serena Hotel last year had started paying off.
“The first phase of the redevelopment of Nairobi Serena Hotel will be handed over in August 2018 and consequently the board is optimistic that the last of quarter of 2018 will record improved performance following the completion of the ball room, new restaurant and an executive lounge which will generate additional revenue,” said TPS.
The firm expects to open the Goma Serena Hotel in the Democratic Republic of Congo early next year.
The hotel chain’s board of directors did not recommend declaration of an interim dividend in the period.