Consumer Industries Editor

CAPE TOWN New York-listed luxury resorts developer Kerzner International, which was founded by former South African hotel magnate Sol Kerzner, reported yesterday that all its businesses performed strongly in the first quarter of its financial year.

The company, which plans to build an ultra-luxury hotel at the V&A Waterfront in Cape Town, said it would be extending the scope of its planned expansion in the Bahamas.

The group's adjusted net income rose to $1,26 a share in the March quarter from $1,12 in the same quarter last year owing to improved contributions from Atlantis, Paradise Island in the Bahamas, its One&Only chain of luxury resorts in Mauritius, Dubai and the Maldives and the Mohegan Sun in the US.

Paradise Island improved its average occupancy level slightly to 84% and increased its average daily room rate to $298, the highest it has achieved during a quarter. The Atlantis Casino, which is the biggest in the Caribbean, also performed well.

CEO Butch Kerzner said that as a result of the good performance, Kerzner International had signed heads of agreement with the government of the Bahamas to increase the number of rooms in phase three of the development to 1500 instead of 1200, more than doubling planned convention space, adding more than 9290 square metres of new facilities and expanding the marine attractions.

About $800m would be spent on phase three and elsewhere, including expanding the timeshare part, which would bring planned investment in the Bahamas to about $1bn.

May 05 2004 07:25:42:000AM Charlotte Mathews Business Day 1st Edition