Sun International’s resorts and hotels division posted a 4,3% year-on-year rise in income to R1,3 billion in the first half of this year, driven by a significant 7,6% increase emanating from the group’s flagship Sun City resort.
According to the group’s H1 financial results, Sun City generated R973 million in income, supported by strong leisure demand and a boost in conferencing from the hosting of G20 meetings in the second quarter of the year. A total of R114 million was spent on major refurbishments at the property’s Sun City Hotel and Vacation Club Reserve.
The Maslow Sandton delivered a 3,9% improvement to R79 million, underpinned by corporate travel, conferencing and improved efficiencies.
Challenging trading conditions led to a 6,9% decline in income from the Wild Coast Sun to R264 million.
The income result excluded the impact of the lease cessation of The Table Bay Hotel, which closed for major refurbishments in February.
Adjusted operating profit for the hotels and resorts division, which included the impact of the Cape Town hotel’s temporary closure, fell by 41% to R58 million.
Overall income, when including the group’s casino and gaming operations, grew by 3% to R6,2 billion although total operating profits dropped by 6% to just over R1,1 billion.
Adjusted headline earnings grew by 5,9% to R555 million.
The group said that it was in a strong financial position, having consistently demonstrated its capability to generate significant cash flow through its diverse portfolio. While significant focus would be paid to driving the growth of the company’s casino and gaming operations going forward, the group said that the usual seasonal rebound in resorts and hotels, together with the scheduled December completion of The Table Bay Hotel refurbishment and Sun City refurbishments would be key drivers of further growth.
