HOSPITALITY firm, African Sun Limited (ASL), has set June 30 this year for finalising the sale of the iconic Monomotapa Hotel, which its financial statements for the year ended December 31, 2024, estimate to be worth nearly US$15 million.
The hotel, located in Harare’s city centre and serving as ASL’s registered head office, has been earmarked for disposal since 2024 as part of a broader divestment strategy targeting non-core assets.
In the group’s annual financial statement for the period ended December 31, 2024, the Monomotapa Hotel was part of its “disposal group assets” worth a combined US$19,13 million, which included the Great Zimbabwe Hotel and associated subsidiary Laclede Investments (Laclede).
Last month, the Great Zimbabwe Hotel was sold for US$4,2 million, which included Laclede, as it owned the property.
Hence, if this sale is subtracted from the US$19,13 million, the remainder of US$14,94 million can largely be attributed to the Monomotapa Hotel as its asset value as of December 31, 2024.
“The group resolved to sell Monomotapa Hotel during the year and has been actively marketing the hotel. The transaction is expected to be completed before 30 June 2025,” ASL said in its financial statement for the year ended December 31, 2024.
The sale of Monomotapa Hotel comes as the hotel recorded a loss of US$883 293 in 2023, before turning it into a profit after tax of US$88 992 last year.
The 2023 loss was attributed to expenses of US$6,23 million, whereas the following year this was down 12%.
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Last year, the hotel generated US$6,16 million in revenue, up from US$5,59 million in the prior year.
“As part of its strategy, the board approved the sale of several non-core assets, and the Great Zimbabwe Hotel and Monomotapa Hotel were earmarked for sale,” ASL chairperson Lloyd Mhishi said.
“After year-end, the sale of the Great Zimbabwe Hotel has been consummated, and ownership of this hotel was transferred with effect from 1 April 2025. Sun Leisure Tours, the travel, transfers and tours division, was discontinued on 31 March 2024.”
ASL’s efforts to refocus on core properties are meant to free up capital for high-return investments.
The Monomotapa Hotel sale is expected to boost liquidity for ASL, which ended 2024 with a strong cash position of US$9,77 million and no external debt.
“The group achieved notable progress in its refurbishment initiatives during the year, which primarily included the completion of public area renovations at Hwange Safari Lodge. Plans for 2025 include commencing the refurbishments of Holiday Inn Harare, Elephant Hills Resort, Troutbeck Timeshare Lodges and the second phase of renovations at The Victoria Falls Hotel,” Mhishi said.
“The downside of these refurbishments is the reduced room inventory for the group for the 2025 financial year. These strategic capital investments aim to enhance guest experiences and grow the portfolio’s market share. Additionally, the group will embark on the second phase of the Marlborough Sunset Views residential development, targeting 55 stands. This project is expected to bolster revenue and liquidity.”
ASL revenue rose 15% to US$53,98 million last year, from the 2023 figures.
This increase was supported by growth in occupancy and stronger average daily rates, which increased by 3% to US$119, from US$115 in 2023.
However, the Zimbabwe Revenue Authority’s additional tax assessment for the 2019 financial year of US$2,57 million left ASL with a loss of US$689 162.
This was from a profit after tax of US$50 748 in 2023.
Mhishi said ASL remained optimistic about the recovery of the tourism sector, building on the progress made in the local market and the ongoing rebound of international travel.
“The tourism sector does, however, face significant risks from economic and geopolitical challenges,” he said.
“The suspension of foreign aid funding by the United States is expected to negatively impact business from non-governmental organisations and other government-funded programmes. Locally, business activity is expected to remain subdued due to tight liquidity and low government expenditure.”
