Cresta Jwaneng’s financial woes persist

Lewanika Timothy | Monday June 22, 2026 06:00

The group has had to take a knock on the valuation of the Jwaneng hotel as occupancy levels plunge, following another year of poor performance.

The hospitality and leisure chain has had to write down the value of Cresta Jwaneng by over P14.1 million, driven by the overall sentiment of the market’s spending ability and its capacity to sustain meaningful occupancy rates to support the investment.

In commentary accompanying the group’s 2025 Annual Report, Cresta directors said the overall slowdown in the diamond sector has had negative spillover effects on the hospitality industry, with hotels experiencing less bookings and occupancy rates, particularly the Jwaneng asset, which sits at the very heart of diamond mining activity.

Cresta Jwaneng is located on the Trans-Kalahari Highway that links Johannesburg and Windhoek. The hotel is just five minutes away from the world-renowned Jwaneng Mine.

“Cresta Jwaneng recorded an impairment loss of P14.1 million following a reassessment of its recoverable amount,” directors said. “The impairment was primarily driven by an increase in the discount rate applied in the valuation, reflecting tightening liquidity conditions in the domestic market and the associated rise in Botswana sovereign bond yields, which reduced the present value of projected cash flows. “This was further impacted by subdued trading conditions as the market adjusted to policy and economic changes, affecting near-term cash flow expectations.”

Cresta group managing director Morulane Morulane said the Jwaneng asset had been under pressure during the year.

“The slowdown in the global diamond market, which has had a knock-on effect on the domestic economy, also weighed on corporate travel demand,” he said. “Cresta Jwaneng, given its proximity to mining-related activity, experienced the most direct impact of this slowdown.“

Cresta Jwaneng, which opened in mid-2024 in partnership with the Debswana Pension Fund, was expected to benefit from the mining town’s economic activity.

Cresta’s finances have been under pressure due to disruptions from digital booking sites alongside lower disposable incomes in the economy. Government’s curtailment of its spending has not helped the industry, as well as, making the post-COVID-19 recovery difficult.

Cresta recorded revenue of P365.2 million for the year ended December 2025, representing a decline of P19.5 million or five percent compared to the prior year. The decrease in revenue was primarily driven by lower occupancy levels and softer average room rates across the group’s business-focused hotels, which account for 77% of the total room inventory.

Directors said that to support revenue recovery, the group was intensifying its digital marketing and distribution strategies, targeting both corporate and international travellers. Looking ahead, Cresta intends to further strengthen these initiatives by expanding its digital presence and enhancing targeted marketing campaigns in key regional and international markets.

Morulane said Cresta would also pursue other strategies.

“The board and management will pursue market diversification initiatives, including opportunities to expand regional demand and grow the leisure segment of the portfolio, whilst leveraging recently refurbished and expanded properties to support improvements in occupancy and yield,” he said.