Political impasse, Covid-19 dent BHL performance
Blantyre Hotels Limited (BHL), the Malawi Stock Exchange-listed hospitality group, says its business in the half-year ended March 31 2020 slowed down due to post-election impasse and impact of the Covid-19 pandemic.
In its summary of financial statements, BHL, owners of Ryalls Hotel in Blantyre, has attributed the drop in occupancy levels to reduced travel due to the political environment and travel restrictions as a precautionary measures against coronavirus.
The hotel’s occupancy levels declined to 52 percent compared to 58 percent achieved during the same period last year.
Reads in part the statement signed by BHL board chairperson Vizenge Kumwenda: “The closure of Chileka International Airport [in Blantyre] in the last half of the year had also a negative impact on business from our foreign guests.
“This as well as the Covid-19 pandemic brought by travel restrictions, impacted the business.”
BHL total revenue for the period was recorded at K1.746 billion, a 12 percent drop from K1.993 billion during the same period last year.
The financial statement shows that cost of sales decreased from K872 million to K808 million, representing a decrease of seven percent due to cost control measures employed during the period.
BHL said it progressed with the Lilongwe hotel project as plans for the land were approved and the application for the title deed is in progress.
The hotel chain said due to the impact of Covid-19 global pandemic, it expects business for the next six months to be tough due the worldwide lockdowns and travel restrictions.
