African Sun says it is selling its biggest hotel, the 50-year old Monomotapa Hotel, because the company needs to “evolve” and invest more in “new opportunities” in Victoria Falls and elsewhere.
The company says it is on a strategy to let go of “certain non-core assets”.
“A pivotal decision in this strategy is the planned sale of African Sun’s flagship property, the historic Monomotapa Hotel in Harare, which celebrated its 50th anniversary in April 2024,” says the company in a statement Thursday.
The company will use the money to refurbish its remaining hotels, which include the Holiday Inn hotels and Troutbeck.
Earlier in October, the company cancelled a US$7 million deal for two hotels. Great Zimbabwe Hotel, one of its least profitable operations, was to be sold for US$4.45 million, while Beitbridge Express Hotel, which has been shut down since 2016, was to go for US$2.5 million.
The deal had been signed with TD Hotels, a company tied to former central bank governor Gideon Gono.
Monomotapa Hotel is said to have attracted interest from two hotel brands, Legacy and Protea.
African Sun plans to turn its focus to Victoria Falls, which is seeing growing investor interest as arrivals climb.
“It is widely acknowledged that hotel portfolios must evolve in order to stay competitive,” the company said. African Sun says it plans to “explore new opportunities in Victoria Falls and other considered destinations within Zimbabwe”.
African Sun co-runs the Victoria Falls Hotel with Meikles, which has announced its own plan to sell a key asset. It is believed that Meikles is discussing the sale of its 50% share of Vic Falls Hotel to Albwardy, the Dubai investor that bought the Meikles Hotel in 2019.
In the half year to June, African Sun reported a 14% increase in revenue to US$25.6 million. This was driven by firmer Average Daily Rates of US$112, an increase of 9% from the first half of 2023. Hotel occupancy across the group closed the half year at 50%, a four percentage points increase compared to the same period last year.
NewZwire
