TPS Eastern Africa, the operator of Serena Hotels, achieves a remarkable milestone with a net profit of Sh870.87 million for the financial year ended December 2023, representing a significant 2.3 times increase from the previous year. This record-breaking profit reflects the company’s resilience and strategic initiatives amid challenging market conditions, positioning Serena Hotels as a leader in the hospitality industry.
The surge in net profit is attributed to increased business across Serena’s portfolio of 22 hotels, resorts, safari lodges, and camps within the Eastern Africa region. With a renewed confidence in the foreign leisure and corporate market segments, Serena Hotels experienced substantial growth in business volumes from both domestic and regional markets, spanning leisure, corporate travel, events, and functions.
Despite the impressive financial performance, investors will not receive dividends from the record profit, as the board prioritizes substantial investments for the future. TPS Eastern Africa plans to focus on upgrading technological infrastructure, enhancing guest facilities and comfort, and investing in the renovation and refurbishment of guest rooms and public areas to maintain its competitive edge and elevate guest experiences.
The decision to forgo dividends underscores TPS’s commitment to long-term sustainability and resilience in the face of market challenges, including the depreciation of the shilling and rising finance costs. By reinvesting profits into product upgrades and improved technology, TPS Eastern Africa demonstrates its dedication to enhancing operational efficiency and maintaining its position as a leading hospitality provider in the region.
