TPS Eastern Africa, the umbrella company for the Serena Hotels, has reported a Ksh. 557.3 million loss after tax for the first six months of 2021. This is a 13% decrease from the Ksh. 640.9 million loss reported for the same period last year.
The firm’s revenue from contracts with customers declined to Ksh. 1.07 billion, compared to Ksh. 1.1 billion for the same period in 2020, while Operating loss closed at Ksh. 254.8 million. According to the Tourism Research Institute data, Kenya received 305,635 international arrivals between January and June this year.
In 2020, Serena Hotels reported a net loss of Ksh. 1.2 billion for the full year, the biggest loss in the company’s history. The loss was a big shift from Ksh. 181.7 million profit after tax posted in December 2019.
Serena’s revenue in 2020 fell to Ksh. 2.03 billion from Ksh. 6.82 billion in 2019, a 70% drop due to the disruptions in the hospitality sector occasioned by the damaging economic effects of the COVID-19 pandemic. The company’s finance expenses jumped to Ksh. 586 million at the end of 2020 from Ksh. 178 million in December 2019.
TPS Eastern Africa reported a 16% rise in long term debt to Ksh. 6.8 billion in 2020 from Ksh. 5.9 billion the previous year. Its net assets decreased to Ksh. 15.08 billion at the end of 2020 from Ksh. 15.10 billion at the end of 2019.
Despite the challenges poised by the COVID-19 pandemic, Serena Hotels expanded its network of hotels in East Africa with the launch of the Goma Serena Hotel in the DRC in September, 2020.
The company is optimistic of a recovery in the third and fourth quarters of 2021, given the vaccine rollout around the globe and the easing of travel restrictions. However, the company’s board of directors are bracing for a tough year ahead and therefore do not recommend a dividend for the year 2020.