Innocent Sibonginkosi Ncube
African Sun Limited has announced the sale of its flagship property, the Monomotapa Plaza Hotel, which has been a prominent fixture in Harare for 50 years.
The decision to sell comes as part of the company’s strategy to “evolve” and invest in “new opportunities” in areas like Victoria Falls and other destinations in Zimbabwe.
The company aims to divest from certain non-core assets, with the proceeds from the sale intended to refurbish its remaining hotels, including the Holiday Inn and Troutbeck.
The Monomotapa Hotel celebrated its 50th anniversary in April 2024, marking a significant milestone in its history.
Recent Developments
Earlier this month, African Sun canceled a US$7 million deal involving the sale of two other hotels, including the Great Zimbabwe Hotel and Beitbridge Express Hotel. The Monomotapa Hotel has reportedly attracted interest from hotel brands such as Legacy and Protea, indicating a potential competitive bidding process.
Focus on Victoria Falls
African Sun is shifting its focus towards Victoria Falls, which is experiencing increased investor interest due to rising tourist arrivals.
The company co-manages the Victoria Falls Hotel with Meikles, which is also considering selling its 50% stake in the hotel to a Dubai investor.
In the first half of the year, African Sun reported a 14% increase in revenue to US$25.6 million, driven by higher average daily rates and improved occupancy rates. This financial growth underscores the company’s potential for future investments in the hospitality sector.
Zim GBC News©2024