Property concern Dawn Properties Limited revenue for the five months to May 2018, increased 27 percent to $2,2 million compared to same period last year.
Property income from hotels and timeshares was 33 percent higher than the same period last year on the back of good performance in the hospitality industry.
“Trading conditions improved significantly for our tenant African Sun, with a better than expected performance in what is traditionally their low peak period,” Dawn said
Timeshare revenue continued to increase with focus on improving the product visibility in the market through increased marketing efforts.
The group has undertaken hotel improvement plan.
At Amber Hotel in Mutare, the group has undertaken to replace guest elevators.
The project should be completed in by end of July 2018.
Tenant, African Sun is also refurbishing rooms for the Holiday Inn brand to improve their ambience and appeal to customers.
During the financial year 2017, operating expenses were $2,9 million compared with $2,7 million from same period in the prior year, which represented an 8,4 percent increase in operating costs.
According to Dawn, costs increased as a result of renovation work undertaken at Caribbea Bay Hotel, Kingfisher Cabanas in Kariba as well as the Blue Swallo Timeshare unit in Nyanga.
“We will continue to identify new hotel improvement projects, jointly with the tenant, so as to position our properties as ‘the go to destination for hospitality’” said Dawn.
At $951 800 revenue from property consultancy was 21 percent higher than the same period last year.
The positive performance was attributed to business process re-engineering in both the group’s property management business and valuation advisory services.
Fee income from property management was up 9 percent. Fee income from valuation advisory services was 13 percent above same period last year.
The unit will place more emphasis on corporate clients and drive growth through long term client management.
The group anticipates property division to drive profitability for the remainder of the year.
Despite the challenging operating environment, management at Dawn remain upbeat of brighter prospects driven by the current good business momentum.
“We have seen good business momentum through the opening months of 2018.
“In the short term, priority will be to consolidate the existing performance while continuing to explore new areas of growth in both hospitality assets and residential property development,” said Dawn.