Botswana-listed hotel group Cresta Marakanelo Limited (CML) has reported a P10.4 million loss for the six months ended 30 June 2025, reflecting a sharp downturn from the P5.7 million profit posted in the same period last year.
Cresta Hotels is one of Southern Africa's leading hotel management groups, operating business and resort hotels in Zimbabwe, Botswana and South Africa.
According to the company’s unaudited half-year results released on 26 September 2025, revenue fell 7% to P174.9 million from P187.1 million in June 2024, largely due to weaker performance in the business hotel segment, which accounts for about 76% of CML’s room inventory.
Despite the revenue contraction, cash generated from operations rose 36% to P40.7 million, indicating tighter cost and cash flow management. However, the company’s operating profit plunged by 80% to P2.8 million, and the group recorded an after-tax loss as higher lease depreciation, increased administrative costs, and reduced margins weighed on results.
Gross profit margin narrowed to 32%, down from 37% a year earlier. The company attributed the decline to higher lease depreciation costs following the 49-room expansion at Cresta Jwaneng and increased food and beverage input prices.
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Administrative expenses rose modestly to P48.6 million, driven by refurbishment projects and investments in research and development. Meanwhile, sales and distribution costs decreased 13% as CML scaled back digital marketing after last year’s spending cycle.
CML’s total assets remained stable at P568.2 million, while shareholders’ equity declined by 8% to P152.9 million. The company’s bank overdraft position improved slightly to P6.4 million, and borrowings were reduced from P190.5 million in 2024 to P158.2 million.
The Board noted that no significant events occurred after the reporting period and reaffirmed the company’s going concern status.
Looking ahead, CML said FY2025 remains a transitional year focused on safeguarding liquidity, maintaining operational capacity, and broadening the customer base amid softer market conditions. Management expects some uplift in trading activity during the peak leisure season in the second half of the year.
“The peak leisure season in the second half may provide some improvement to trading activity; however, the extent of this uplift will depend on prevailing market conditions,” the Board stated.
Cresta Marakanelo operates several hotel brands across Botswana, including Cresta Lodge, Cresta Jwaneng, Cresta Mowana, and other properties under the Urban Oasis, Urban Heartbeat, African Roots, and African Fingerprint segments.
Cresta Hotels operates several properties in Zimbabwe, including Cresta Lodge (Harare), Cresta Jameson (Harare), Cresta Oasis (Harare), Cresta Churchill Hotel (Bulawayo) and Cresta Sprayview (Victoria Falls).
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