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Johannesburg - Hotel and gaming operator Tsogo Sun Holdings has pinned its hopes on the plethora of sporting events during the next twelve months to drive growth.
Tsogo said major sporting events - including the Indian Premier League cricket tournament, the British and Irish Lions rugby tour and the Confederations Cup - in the first half of its new financial year "will assist occupancies". The events should also help ensure the group is prepared for the Fifa world cup in 2010.
Tsogo, which is part of the investment holding company Hosken Consolidated Investments (HCI), reported 8% revenue growth to R5.9bn in the year to end-March 2009.
"The contraction in the local economy has pressurised the South African tourism and hospitality industry in the second half of the financial year," says HCI in its results commentary.
HCI says room rates and the number of rooms sold have declined significantly, after a number of years of "solid" growth.
"To date, the government, group and conference segments have maintained prior year levels." Tsogo Sun trades mainly through the Southern Sun and Holiday Inn chains.
Its numbers compare favourably to the 6% revenue growth reported by Sun International in a business update for the past nine months on Thursday.
Sun International's revenue would have looked worse had the new Monticello gaming casino complex in Chile not been included. The company said the revenue would have declined 1% on the 2008 figure.
During the past year HCI expanded its hotel exposure by purchasing 50% of the Cullinan Hotel group in the Western Cape.
Tsogo Sun has another five new hotels under development, with the budget hotel StayEasy Rustenburg opening in time for both the Confederation and 2010 world cup.
- Fin24.com