Tsogo Sun reports low occupancy levels

Tsogo Sun Hotels, a major player in the hospitality industry, has been facing significant challenges due to the impact of the ongoing COVID-19 pandemic. The company reported a loss in headline earnings per share, with occupancies still far below pre-pandemic levels. In a recent interview with CNBC Africa, Marcel von Aulock, the CEO of Tsogo Sun Hotels, discussed the current situation facing the company and the potential outlook for recovery. Von Aulock acknowledged the difficulties faced by the industry, noting that the third wave of the pandemic had a devastating impact, bringing occupancy levels down to early pandemic levels. However, he also expressed optimism about the future, citing the quick recovery seen between waves and the strong latent demand for travel. Tsogo Sun Hotels, as the largest hotel group in the country, has valuable assets and a wide distribution network that positions it well for the eventual recovery. Despite currently operating at about half of the expected levels, Von Aulock emphasized that the company's focus is on surviving the crisis and preparing for a sustained return to normalcy. He highlighted the strong performance of leisure-focused properties, indicating a promising trend in domestic leisure travel. However, the key challenge remains the absence of big corporate events and international tourism, which are crucial components for the industry's recovery. Looking ahead, Von Aulock discussed the potential impact of a fourth wave of the virus on the company's recovery timeline. He expressed confidence that if the fourth wave is less severe and does not lead to increased restrictions on travel, Tsogo Sun Hotels could potentially reach or even surpass 2019 levels by the second half of next year. With pent-up demand and the return of international travel expected to drive a potential boom in the industry, Von Aulock remains cautiously optimistic about the future. In response to a hypothetical scenario where the country faces another lockdown due to a severe fourth wave, Von Aulock urged caution against such measures. He emphasized the importance of assessing whether the health system is overwhelmed and highlighted the devastating impact that continued lockdowns would have on the already struggling tourism and hospitality sector. Von Aulock warned against further restrictions that could further cripple businesses and lead to job losses in the industry. Overall, while the road to recovery for Tsogo Sun Hotels and the broader hospitality industry remains challenging, Von Aulock's insights offer a glimpse of hope for a potential rebound in the coming months. As the industry navigates the uncertainty of the evolving pandemic landscape, strategic planning and adaptability will be crucial in shaping the future of Tsogo Sun Hotels and its peers in the hospitality sector.