Julius Baumann

Aviation and Tourism Editor

HOTEL and resort group Gooderson Leisure remains positive about the second six months of the year, with bookings in the run-up to Christmas still strong.

While the group noted a slowdown in the number of foreign visitors, the domestic and conference market, which made up 85% of revenue, remained robust.

Gooderson this week reported revenue up 14% to R57,39m and headline earnings 26% higher at R6,54m in the half-year to August.

CEO Alan Gooderson said occupancies had risen a percentage point to 59% in the six-month period. Average room rates also improved over 18 months.

“As we have refurnished and upgraded our properties, so we have been able to raise average room rates,” he said. Overall revenue per available room rose 13% in the interim period.

Earlier this year Gooderson said the group hoped to buy a new property every year but so far this year it had not identified an appropriate opportunity.

“We are continually hunting for the right properties but many of the sellers are asking ridiculous prices.

“We will not simply make an acquisition for the sake of it and will only buy at the right price.”

Exploratory talks with several parties had been held, but an acquisition is still some way off.

The group is refurbishing its two city hotels on Durban’s Golden Mile — the Tropicana and Beach hotels — which are on track for completion by next year.

The expansion of Natal Spa is expected to be completed by March. “We have added seven extra rooms and are now looking at adding a further 12 rooms,” Gooderson said.

Source: Business Day