IT’S OFFICIALLY the holiday season and most businesses across the country will be closing up shop or downsizing to skeleton staff as the mass exodus to holiday destinations begins. It is a time when hotel occupancy rises and people spend with a frivolous Christmas cheer that can be likened to gay abandon.
Both of these bode very well for hotel and gaming group Tsogo Sun Holdings. Not only did Africa’s biggest hotel and casino operator report a very impressive set of results but the space in which they operate seems to be going from strength to strength. The hotels side of the group gets carried by the gaming somewhat but the hangover from the 2010 Soccer World Cup seems to be a thing of the past, and hotel occupancy rates are stable.
With good cash f low, a solid balance sheet and a strong brand however, it might be worth adding some Tsogo Sun shares to your Christmas stocking.