Lonrho Africa Plc - Lonrhos Hotel Cardoso Turns Ro
LAF
LOLAF
Lonrho Africa Plc - Lonrho"s Hotel Cardoso Turns Round Performance
Lonrho Africa Plc
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho Africa" or "the Company")
LONRHO"S HOTEL CARDOSO TURNS ROUND PERFORMANCE
Lonrho announces that the Hotel Cardoso ("Hotel") in Mozambique has
recorded its best year"s trading for eight years, due to higher levels of
revenue, occupancy and average room rates. Lonrho owns 59 per cent. of the
Hotel including the management contract.
For its financial year ended 30 September 2006, revenues were up by 15 per
cent. as a result of a 9 per cent. increase in occupancy levels to 53 per
cent., combined with a 14 per cent. growth in average room rate achieved.
These factors, coupled with strong cost control, have resulted in the
enhanced performance.
During its latest financial year, the Hotel has spent US$320,000 on capital
improvements which included, inter alia, the upgrading of public area air
conditioning, carpeting, landscaping, lift refurbishment, a new gymnasium
and wireless internet throughout the Hotel.
As part of the commitment to improve and expand the Hotel"s facilities, a
further US$750,000 will be spent in the current financial year on the
refurbishment of all Hotel bedrooms and major improvements to its
conference facilities.
In addition, the Hotel is seeking to acquire land adjacent to its existing
premises, which will enable further expansion of the Hotel"s facilities in
the future.
"The Hotel Cardoso"s improved performance fully justifies the Company"s
decision not to dispose of this asset. With the firm backing and commitment
of the Board of Lonrho, we expect the Hotel to continue to maintain its
position as one of the finest hotels in Mozambique," said David Lenigas,
Lonrho"s Joint Executive Chairman and Chief Executive Officer.
9 October 2006
Date: 09/10/2006 01:07:02 PM Produced by the JSE SENS Department
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