Hospitality Property Fund struggles to grow its occupancy rates and income
A stagnant economy has negatively affected occupancy rates at SA’s hotels
Hospitality Property Fund (HPF), a subsidiary of gaming and leisure group Tsogo Sun, says SA's hotels are struggling to fill their rooms amid a stagnant economy. Room occupancy at the fund’s 53 hotels and resorts declined 2.6% to 60.6% while the market experienced a 2.0% to 60.0% decline, according to the STR Global South African Hotel Review, HPF said following the release of results. The company declared a combined dividend of 41.22c in the six months to September , 0.61% lower than the 41.83c declared in the comparable 2017 period. The company said hotel trading is expected to remain under pressure until the outlook for the SA economy improves. “Ongoing capital expenditure requirements will be funded partially from a dividend retention and partially from debt facilities,” it said. Rental income for the six months increased 10% to R345m compared with R314m in 2017, mainly due to the inclusion of 29 hotel properties for the first time in the group’s financial results. The company s...
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