Hotels and leisure group Southern Sun expects to report higher annual earnings due to robust trading in the Western Cape and notable growth in Gauteng.
The group, which is valued at R11.4bn on the JSE, said late on Thursday that its headline earnings per share (HEPS) for the year ended March were expected to be 31%-35% higher at 73.6c to 75.9c.
The group said domestic and international corporate transient travel had increased over the year with demand for conferencing and events bolstering hotels located in prime business hubs near the Cape Town International and Sandton Convention Centres.
The group said in March that trading volumes improved during the second six months of the financial year with group occupancy at 60.7% for the 11 months ended February compared with 58.3% achieved in the prior comparative period.
The group’s average room rate increased by 5.1% for the period from a year ago.
The refurbishments of Southern Sun The Cullinan and the Sandton Towers, which reopened in July 2024 and December 2024 respectively, as well as the refurbishment of the restaurant and rooms at Southern Sun Rosebank and Southern Sun Sandton, were well received by the market and contributed to the occupancy and rate growth experienced in Cape Town and Gauteng in the second half of the financial year, Southern Sun said.
The group operates more than 90 hotels and resorts across SA, Africa, the Seychelles, and the Middle East. Its portfolio includes various brands, including Southern Sun Hotels, Southern Sun Resorts, Garden Court, and SunSquare.
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