TPS Eastern Africa, the operator of Serena Hotels, has reported a wider loss for the first half of 2026. Its net loss rose to Sh66.4 million as revenue declined slightly during the period.
Revenue fell to Sh4 billion in the six months ended June 2026, from Sh4.05 billion a year earlier. The company attributed the weaker performance to several financial and operating pressures.
Finance income declined after the company deployed part of its cash reserves. At the same time, depreciation costs increased following recent capital investments.
TPS Eastern Africa also recorded losses from associated companies, while unrealised foreign-exchange losses added pressure to its results. Higher energy costs further increased the strain on the business.
Geopolitical developments also affected the hospitality sector, while travel advisories and Ebola-related health measures disrupted some travel activity. These factors affected international, corporate and regional travel.
Despite the weaker results, the company has a sizeable financial base. TPS Eastern Africa holds about Sh22 billion in assets, while shareholders’ equity stands at more than Sh13 billion. The company expects performance to improve in the second half of the year. It is banking on refurbished facilities and improved operational efficiency to support the recovery.
The upgrades include facilities at Dar es Salaam Serena Hotel and Lake Manyara Serena Safari Lodge. The company expects the improved facilities to support higher revenue as travel activity recovers. TPS Eastern Africa is also seeking to reduce its financing costs. Lower debt levels could help ease pressure on the business as it works to improve profitability.
The company also expects digital distribution channels to generate more income. The Serena Prestige Club loyalty programme is another area expected to support revenue growth.
The operator is therefore relying on several measures to improve its second-half performance. These include hotel upgrades, lower financing costs, stronger digital sales and greater customer loyalty.