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TPS Eastern Africa, the company that owns and operates Serena Hotels, has reported a net loss of KSh1.2 billion, its biggest loss in history after a tough operating year in the hospitality industry.
Unlike other challenges in the past, the uncertainty of the covid19 pandemic had devastating effects on Serena’s financial performance.
In a public statement, the company said that it “experienced material cancellations” as a result of the restrictions introduced globally to curb the spread of covid19.
Serena’s revenue in 2020 fell to KSh2.03 billion from KSh6.82 billion in 2019, a 70% drop, as a result of the disruptions in the hospitality sector.
Despite the challenges faced in the past year, Serena managed to expand its network in the East African region with the launch of Goma Serena Hotel in the Democratic Republic of Congo in September 2020.
The company is optimistic of a recovery in the third and fourth quarters of 2021, given the vaccine rollout around the globe and the slow return to normal activities. However, the company’s board of directors are bracing for a tough year ahead and therefore do not recommend a dividend for the year 2020.
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