Gooderson bets on better times

Boutique hotel and timeshare group Gooderson Leisure is spending on expansions in the 'bad times' to be ready when better times return to the hotel industry.

The company said it planned to develop an adventure park at its Drakensberg Gardens resort and a hot springs resort elsewhere in KwaZulu-Natal.

Alan Gooderson, the chairman of the AltXlisted company, said yesterday that hotels had experienced a tough year because of a weak domestic economy.

According to the PwC Hospitality Outlook 2015 report, the hotel industry has had a difficult time as large increases in supply coupled with a weak economy had led to a drop in occupancy rates that put downward pressure on pricing.

Faster increases in room rates are expected over the next few years, the report says.

Gooderson’s revenue rose 7% to R128.3m in the year to February, and earnings before interest, tax, depreciation and amortisation increased 23% to R19.9m.

The dividend was increased to 2.025c per share from 1.87c a year earlier. This is the fourth consecutive year that Gooderson has increased its dividend.

Mr Gooderson said he expected the economy and international arrivals to pick up next year.

“We will be selling off nonperforming assets and we look forward to good occupancies in 2016,” he said.