RDC Properties plans to exit Madagascar market due to unprofitable gains from Isalo Rock Lodge. In 2016 annual report, RDC properties Chief Executive, Jacopo Pari said they have received a few offers for the property and they shall consider exiting the market if they receive adequate offer.
“We have received a few offers for the property and this is a sign that the lodge is attracting the interest of prominent local investors. We shall consider exiting the Madagascar market should an adequate offer be received,” stated Pari. He said the 60-room lodge has performed in line with expectations and the property is now making a small profit from operations. “We expect this to improve in the next year.
However, the investment reported a small loss due to an unrealised exchange loss,” he said. For its Masa Centre development in Gaborone, the group has recorded a remarkable success and continues to gather strength. “The Masa Centre recorded almost 100 percent occupancy during the period and the subsidiary, three partners Resort paid dividend to its shareholders for the first time,” said Pari.
RDC completed the refurbishment and rebranding of the Masa Square hotel in Gaborone last year and is now fully operational with 30 luxurious Masa executive suites, Giachetti said the completion of Masa suites as well as Masa Square Hotel refurbishment has added positively to the group.
He explained that the operating results for Chobe Marina Lodge were very pleasing as the internal budget was above the prior year. Presenting the Group’s year-end results recently, RDC Properties Group Chairman, Guido Giachetti, said Gaborone hospitality sector is facing increased development activities, which might lead to risk of oversupply in future. The group recorded 24 percent increase in profits to P124.5 million for the year ended December 2016.
Giachetti said the investment and property portfolio grew by 12 percent to P1.2 billion with the largest contributor being the Chobe Marina Lodge, which was independently valued this year.
“Contractual lease rental revenue improved by six percent, excluding the effects of the straight-line rental adjustments. This growth is largely due to the performance of Chobe Marina Lodge,” said Giachetti.