HAPPY VALLEY PROFIT DOWN BY 10.8%

MBABANE –Happy Valley Hotel recorded a 10.8 per cent operating profit drop in 2017. 

The company’s operating profit fell from E5.1 million recorded in 2016 to E4.5 million in 2017.  This decrease was 10.8 per cent according to independent calculations by the Business Desk. 
Investopedia explains that operating profit is the profit from a firm’s core business operations, excluding deductions of interest and tax.

The hotel’s revenue rose from E34.4 million (2016) to E38.2 million (2017) which was an increase of 11.05 per cent. Similarly, the gross profit also hiked from E23.8 million in 2016 to E26.9 million which represented an upsurge of 12.84 per cent. 
The good trading year, as described by the hotel’s owners Eswatini National Provident Fund (ENPF), saw the hotel’s occupancy go up to 82.53 per cent from 82.11 per cent in 2016. This modest improvement was attributed to the positive impact of the Southern African Development Community (SADC) Chairmanship of His Majesty King Mswati III which had already been envisaged during the previous financial year.

The average room rate showed a healthy increase from E664 per person per night to E741 per person per night increasing the Hotel’s turnover to E38 201 730 from E34 397 677 in the prior year an increase of 11 per cent on a year-on-year basis.

Increase

The market segments that have shown the highest increase were the Tour Operators’ and the corporate segment with the conference and leisure business being slightly down versus the previous year.
“However, looking at the average room rate achieved across the market segments, the property has achieved an average room rate increase of 15.18 per cent increasing the overall turnover performance within the rooms division from E12 764 780 to E14 197 474,” it was reported in the ENPF financial report for the 2017 financial year.

It was also pointed out that the food and beverage department had shown the same growth ratio with the overall performance growing from E19 816 444 to E20 027 731.
It should be mentioned that the upsurge for leisure and conferencing facilities prompted Happy Valley to construct an additional 60 rooms worth E73 million.

Explained

General Manager Luigi Rosi previously explained that Construction Associates (CA) had been granted the tender to undertake the development of additional rooms with different sizes to be fitted with exclusive furniture and fittings.  
In terms of job creation, Site Agent Bongani Khumalo from Construction Associates explained that 180 emaSwati had been provided with a steady source of income as a result of the development. Khumalo said 65 people were employed by CA directly while the rest of the employees had been employed by sub-contractors.

The sub-contractors are Kellina Investments, Boab Investments, NNBZ Investments and Chaves Investments while the specialist contractors are: Alternative Energy (electrical works), Swazi Lifts (lifts), BR Doors (aluminum works), Interior Solutions (ceilings) and Swazi Roof Masters (roofing).

Designed

Khumalo said the building was designed by Steve Hall Development Consultants and the engineers are FMC Projects and MA Dlamini Consulting.
The site agent said the triple story building comprised of basement parking with two lifts, court yard area with splash pool for adults and children. The ground and first floor has 30 rooms each.    

 
Site Engineer Andreas May explained that the building was being constructed under very strict conditions.
He said technically it would be strong and durable to guarantee the safety of guests.

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