Business Reporter
African Sun has sold two of its struggling hotels, the Great Zimbabwe Hotel and Beitbridge Express Hotel, for a combined total of almost US$7 million. The company plans to use the funds to refurbish its remaining operations.
“The sale of these hotels will help us upgrade our primary assets,” said African Sun in a statement.
“We deemed it necessary to sell selected assets not core to our future to expedite refurbishments.”
The Great Zimbabwe Hotel, sold for US$4.45 million, was one of the company’s least profitable operations. The Beitbridge Express Hotel, sold for US$2.5 million, had been shut down since 2016.
African Sun’s hotel occupancy rate rose to 52% last year, a significant increase from previous years. The company aims to continue improving its performance by upgrading its remaining hotels.
“We are committed to investing in our core assets to enhance our offerings and improve our competitiveness,” said African Sun.
The company currently operates ten hotels, including seven owned properties and three leased properties. It co-runs the Victoria Falls Hotel with Meikles.
By selling its underperforming hotels, African Sun is strategically positioning itself for future growth and success in the hospitality industry.
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