Cresta in multi-million expansion drive

Fraser Mpofu
Correspondent | Thursday March 26, 2009 00:00

TA Holdings, the parent company of Cresta Hospitality said in a statement accompanying its financial results for the year ended 31 December 2008, that the investment will be done in preparation for next year's 2010 World Cup in South Africa.

The money will be used to build 28 more rooms at  Cresta Riley's in Maun. Cresta Churchill in Bulawayo will also get an additional 50 rooms. 'A US$7 million refurbishment programme has been initiated for completion by the middle of 2010,' TA Holdings said. The refurbishment and expansion work is scheduled to be completed by June next year in time for the start of the World Cup.

Hotel and leisure groups in southern Africa are preparing to host thousands of international tourists who are expected to flock to the region to watch World Cup. Some tourists are expected to visit countries in the region before and after the games, so hotel groups are sprucing up or expanding their facilities. 

For a hotel group to be able to accommodate international visitors, it has to be certified by MATCH, FIFA's accommodation company.

South Africa can only offer around half of the 50,000 rooms required for the tournament.  This means that the regional giant's immediate neighbours, such as Botswana, Zimbabwe, Lesotho, Swaziland and Mozambique could host some of the visitors.

TA Holdings was set up by Shingi Mutasa, a Zimbabwean businessman. It has interests in hospitality, insurance and agriculture. 

The group said Cresta hotels and underwriting profits at the insurance companies pushed its operating profit to $381,000 in the year ended December 31 up from $112,000 in 2007.

On its Zimbabwean operations, TA Holdings said the government's approval for local firms to use multiple currencies will improve revenue received by the investment holding company.

Cresta is the third biggest hotel group in Zimbabwe after African Sun Limited and Rainbow Tourism Group.

Cresta Hospitality is one of southern Africa's largest hotel management groups, operating or managing 15 three to five star properties in Botswana, Zambia, Ghana and
Zimbabwe. In Zimbabwe, the group owns Cresta Jameson and Cresta Oasis hotels in Harare, and Cresta Churchill in Bulawayo. In Botswana Cresta owns or runs Cresta President in Gaborone, Cresta Botsalo in Palapye, Cresta Bosele in Selebi-Phikwe, Cresta Riley's in Maun, Cresta Thapama and Cresta Marang in Francistown.  In Lusaka, Zambia there is Cresta Golfview Hotel.