Sun International’s resorts and hotels division posted a 4.3% year-on-year rise in income to R1.3 billion (US$74.3 million) in the first half of this year, driven by a significant 7.6% increase from the group’s flagship Sun City resort.
According to the group, during this period, Sun City generated income of R973 million (US$55.7 million), supported by strong leisure demand and a boost in conferencing from the hosting of G20 meetings in the second quarter of the year. The property’s Sun City Hotel and Vacation Club Reserve underwent major refurbishments at a cost of R114 million (US$6.5 million).
The Maslow Sandton delivered a 3.9% improvement to R79 million (US$4.5 million) underpinned by corporate travel, conferencing and improved efficiencies.
Challenging trading conditions led to a 6.9% decline in income from the Wild Coast Sun to R264 million (US$15.1 million).
The group’s reported income excluded the impact of the lease cessation of The Table Bay Hotel, which closed for major refurbishments in February.
Adjusted operating profit for the hotels and resorts division, which included the impact of the Cape Town hotel’s temporary closure, fell by 41% to R58 million (US$3.3 million).
Overall income, including the group’s casino and gaming operations, grew by 3% to R6.2 billion (US$354 million) although total operating profits dropped by 6% to just over R1.1 billion (US$63 million).
Adjusted headline earnings grew by 5.9% to R555 million (US$32 million).
The group said it is in a strong financial position, having “consistently demonstrated its capability to generate significant cash flow through its diverse portfolio”.
While significant focus will be on driving the growth of its casino and gaming operations going forward, the group said the usual seasonal rebound in resorts and hotels – together with the scheduled December completion of refurbishments at The Table Bay Hotel and Sun City – will be key drivers of further growth.
