CAPE TOWN Remedial steps taken in the past few months to put the Don Group back on track after last year's loss were beginning to take effect, Don Group chairwoman Danisa Baloyi and CEO Thabiso Tlelai said in the group's latest annual report, released last week.

"The realignment of Don's sales and marketing strategies shows promise, and the board has reasonable expectations of halting and reversing the results of the year under review," they said in the report.

In the year to June last year, the group, which owns suite hotels, reported an operating loss of R1,2m against the previous year's R2,8m operating profit, and net asset value fell to 7,3c from 8,8c a share.

The group had committed itself to upgrading its hotels and investing in technology, but plans to attract new classes of business backfired and occupancies fell below budget.

Baloyi and Tlelai said the results of the revitalised marketing drive for the six months to December last year were extremely promising.

The group has negotiated a R57,5m Industrial Development Corporation loan to buy back eight hotels it is leasing.