Cost cuts trim Cresta’s losses
Lewanika Timothy | Wednesday September 23, 2026 06:00
In a cautionary statement on the Botswana Stock Exchange (BSE), the hotel group said it anticipates to record a loss before tax of between P8.8 million and P9.7 million for the six months ended June 2026. The forecast compares with a P11.1 million loss before tax recorded in the corresponding period last year and represents an improvement of between P1.4 million and P2.3 million. “This represents an improvement of approximately 13% to 21% over the corresponding period of the previous year, primarily attributable to the benefits of the company’s continued cost optimisation initiatives, operational efficiencies and strategic repositioning initiatives,” the group’s executives said. Despite the improvement, the figures show that Cresta remains under pressure from subdued corporate travel and a difficult operating environment, which have weakened occupancy levels and room rates at properties geared towards business travellers.
The group’s business focused hotels account for 77% of its total room inventory, leaving business heavily exposed to changes in corporate travel, government spending and the performance of the domestic economy. The hotelier’s latest forecast suggests that cost containment, rather than a strong recovery in room demand, remains the main force behind the narrowing loss. Cresta has been implementing operational efficiencies and repositioning parts of its portfolio while stepping up efforts to draw more customers through digital sales channels. The group is intensifying its online marketing and distribution strategy, with a focus on corporate customers and international travellers. Directors have indicated that the company intends to expand its digital presence and launch more targeted campaigns in key regional and international markets as part of efforts to rebuild occupancy and revenue. The strategy is aimed at reducing the group’s reliance on traditional corporate bookings while capturing more leisure and international traffic, particularly at properties serving Botswana’s tourism destinations.
However, the projected half-year loss indicates that the recovery remains fragile. Cresta must still convert the savings secured through its cost-cutting programme into sustainable revenue growth before returning to profitability. Meanwhile, for the year ended December 2025, Cresta recorded revenue of P365.2 million, down P19.5 million, or five percent, from the previous year. The decline was attributed primarily to lower occupancy levels and softer average room rates across its business-oriented properties.