TPS Eastern Africa (Serena) says it registered a Net loss of KSh 640.9 Million for the half-year period ended 30th June 2020.
In the six months ended 30th June 2020, its revenue fell to KSh 1.1 Billion from KSh 2.7 Billion at the end of the first half of 2019.
The listed hospitality chain which operates upscale hotels and resorts in East Africa, Southern Africa, and South Asia suffered an exchange loss on its foreign currency loans of KSh 149.5 Million from a loss of KSh 18.4 Million.
Subsidiary companies include TPS (Kenya) Limited which owns Nairobi Serena Hotel, Amboseli Serena Safari Lodge, Mara Serena Safari Lodge and Kilaguni Serena Lodge; TPS (Zanzibar) Limited which owns Zanzibar Serena Hotel; TPS (Tanzania) Limited which owns Kirawira Serena Camp, Lake Manyara Serena Safari Lodge, Serena Mivumo River Lodge and Selous Serena Camp; and TPS (Uganda) Limited. Other properties owned and managed by TPS Eastern Africa (Serena) Limited include Lake Victoria Serena Resort in Uganda and Polana Serena Hotel in Mozambique.
It made an operating loss of KSh 326.3 Million compared to an operating profit of KSh 124.2 Million in the same period in 2019.
The hotel chain is still refurbishing its prime properties in Nairobi, Kampala and Dar es Salaam.
“The hospitality industry is expected to achieve a ‘new normal’ with local and corporate business most likely to be the first to recover. This will be followed by the meetings and leisure segments,” said Dominic Ng’ang’a, TPS Company Secretary.
“With Covid-19 cases yet to peak in the country and despite relaxation of some earlier restrictions (resumption of international travels), we expect cautiousness of social interactions to extend in the second half of the year which will dent prospects of the hotel industry for the year,” Genghis Capital comments.