Serena Hotels owner widens H1 loss to Sh66.4mn
The loss compares with a smaller loss in the corresponding period last year, while revenue fell to Sh4 billion from Sh4.05 billion.
TPS Eastern Africa, owner of Serena Hotels in Kenya and other East African markets, reported a widening net loss of Sh66.4 million in the first half of 2026. Revenue for the period fell slightly, to Sh4 billion from Sh4.05 billion. The decline was largely due to non-operating costs, such as reduced finance income, higher depreciation from recent investments, losses from associated companies, and unrealized foreign exchange losses.
Geopolitical factors, including the Ebola outbreak and travel advisories, negatively impacted international travel and energy costs. Additionally, public health measures also affected corporate and regional travel. Company Secretary Dominic Ng'ang'a stated that the mixed performance was due to these challenges in various source markets.
The company, with assets worth Sh22 billion and shareholders' equity over Sh13 billion, anticipates improved performance in the second half of the year. Recent refurbishment projects, including upgrades at Serena Hotels in Dar es Salaam and the conference center at Lake Manyara Serena Safari Lodge, are expected to boost revenue.
TPS also predicts operational efficiency improvements, lower financing costs, and increased revenue from digital distribution channels and the Serena Prestige Club loyalty program. Despite near-term challenges, the company remains optimistic about the long-term prospects of East Africa's tourism industry, confident in Serena Hotels' ability to navigate uncertainties and create sustainable long-term value.
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