HOSPITALITY group, African Sun Limited, is selling its Great Zimbabwe Hotel and associated hotel business, as well as its Beitbridge Express Hotel for US$6,94 million to TD Hotels & Leisure (Pvt) Limited as it complements its capital raising activities by disposing non core assets.
African Sun’s decision to sell these assets was reached on March 22, wherein the board agreed to dispose of the Great Zimbabwe Hotel, while the Beitbridge Express Hotel has been held as an asset available for sale since September 21, 2021.
Negotiations were entered into in respect of the Beitbridge Hotel and an agreement of sale was signed on July 18. Negotiations for the sale of the Great Zimbabwe Hotel were held with the same prospective purchaser and an agreement of sale was signed on August 15.
“This announcement statement is neither a prospectus nor an invitation to the public to subscribe for shares in African Sun Limited, but is issued in compliance with the requirements of the Victoria Falls Stock Exchange . . . ,” African Sun said in a statement yesterday.
“. . . to give information to the public regarding the disposal of the Great Zimbabwe Hotel and associated Hotel Business, located in Masvingo, for a gross consideration of US$4 445 000 and the disposal of the Beitbridge Express Hotel, located in Beitbridge, for a gross consideration of $2 500 000 all to TD Hotels & Leisure (Pvt) Limited.”
TD Hotels and Leisure (Pvt) Limited is a budding new hospitality group headquartered in Harare.
The firm seeks to serve the mid–tier tourism market with a product offering that will cover all of Zimbabwe’s major tourist and travel destinations, according to African Sun.
“African Sun has enjoyed a considerable turnaround in fortunes over the past three years post the COVID-19 pandemic,” the group said.
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“In order to expedite the refurbishment of several of the portfolio’s primary hotels, the board deemed it necessary to complement capital raising initiatives by selling selected assets deemed not to be core to African Sun’s future, including the Beitbridge Express and The Great Zimbabwe hotels.”
African Sun said due to deteriorating trading conditions, the Beitbridge Express Hotel was mothballed in early 2016, while the Great Zimbabwe Hotel had been a marginal contributor to the profitability of the group over the reviewed period.
