Nairobi listed hotel group TPS East Africa (TPSE, KE0000000539), which operates the Serena Hotels brand has reported a 227 percent increase in 2017 half year after tax loss.
The group’s loss increased to Sh188 million in In the results sent to Nairobi Securities Exchange (NSE) today, the growth in loss making was driven by spending on improvements on Nairobi and Kampala Serena Hotels and increase in foreign exchange losses.
During the period, Nairobi Serena which accounts for close to half of the group’s income operated at 46 percent capacity on account of ongoing redevelopment and refurbishment work which commenced last year.
The phased redevelopment will cost the group sh2 billion financed by French government owned development financier, PROPARCO.
According to the statement of the half year results, the group spent Sh831 million in investment activities.
In Uganda, 36 new rooms will be added into Kampala Serena business in the second quarter.
The group has warned investors not to use the first half year results to forecast the full year performance.
“Given the seasonal nature of the tourism industry in East Africa, the results for the first half of 2017 are not a basis for forecasting a full year result,” said the company in explanatory notes accompanying the financial statements.
TPS East Africa which is owned by His Highness, Prince Shah Karim Al Hussaini, the Aga Khan IV, operates 24 hotels in Kenya, Uganda, Tanzania, Rwanda and Mozambique.