HARARE (Zimbabwe Investor) - In its audited financial report, hotel group African Sun posted a US$4.3 million loss for the financial year ended 30 September 2009 and a 10% decline in room occupancy owing to liquidity challenges.

Despite achieving US$32 million in revenue, high overheads and payment costs gobbled 32% of the revenue.

African Sun Limited Group Chief Executive Officer, Shingi Munyeza expressed optimism that Zimbabwe’s improving economic circumstances coupled with a world economy recovering from the global recession, would eventually benefit the hotel group.

“The stronger balance sheet will help us to approach the next season aggressively. US$7.5 million will go towards refurbishment of properties,” said Munyeza.

The hospitality and leisure group out ruled any prospects of retrenching any staff as the upcoming World Cup in South Africa needs adequate personnel levels to cater for the influx of tourists.

Meanwhile African Sun has reserved US$7.5 million earned from its rights issue for the refurbishment of 1 400 rooms,

The hotel group cited high local food costs among other factors contributing to the losses, especially after the introduction of the multiple currency system in February 2009. The cost of food is not yet in sync with food prices in the SADC region.