Cresta Hotels recorded a profit of P1 million, an 87% drop from the P7.8 million in the same period last year. The company also saw its cash reserves decline by 83% from P46 million to P7.7 million.
The company’s business hotels, which account for 77% of the room inventory, registered reduced occupancies, which coupled with the high operating leverage nature of the industry, saw a decline in profitability.
According to Cresta, The hotel sector has also yet to be spared the brunt of the slowdown in the diamond market, with Cresta Jwaneng facing direct and first-hand knock-on effects.
Despite these challenges, Cresta registered a 3% increase in revenue for the first half from P180.9 million in 2023 to P187.1 million, driven by Cresta Mowana which enjoys international business.
Administrative and operating expenses increased from P46.9 million to P47.5 million, mainly due to the additional lease-related costs from the 60 new rooms added at Cresta Mahalapye. The new wing at Cresta Mahalapye launched to the market in December 2023 increased the hotel’s room inventory by 94%.