TPS Eastern Africa, the company that owns and operates Serena Hotels, has reported a net loss of KSh1.2 billion for the year 2020, its biggest loss ever, after a tough operating year in the hospitality industry. The KSh1.2 billion net loss is a big shift from KSh181.7 million profit after tax posted in December 2019.

Unlike other challenges in the past, the uncertainty of the covid19 pandemic had devastating effects on Serena’s financial performance.

In a public statement, the company said that it “experienced material cancellations” as a result of the restrictions introduced globally to curb the spread of covid19.

Serena’s revenue in 2020 fell to KSh2.03 billion from KSh6.82 billion in 2019, a 70% drop, as a result of the disruptions in the hospitality sector. The company’s finance expenses jumped to KSh586 million at the end of 2020 from KSh178 million in December 2019.

TPS Eastern Africa reported a 16% rise in long term debt to KSh6.8 billion in 2020 from KSh5.9 billion the previous year. Its net assets decreased to KSh15.08 billion at the end of 2020 from KSh15.10 billion at the end of 2019.

Despite the challenges faced in the past year, Serena managed to expand its network of hotels in East Africa with the launch of Goma Serena Hotel in the Democratic Republic of Congo in September 2020.

The company is optimistic of a recovery in the third and fourth quarters of 2021, given the vaccine rollout around the globe and the slow return to normal activities. However, the company’s board of directors are bracing for a tough year ahead and therefore do not recommend a dividend for the year 2020.