African Sun Limited, a leading hotel asset management company, is undergoing a significant transformation, divesting from non-core assets to focus on new opportunities.
The Victoria Falls Stock Exchange listed company’s flagship property, the 50-year-old Monomotapa Hotel, is up for sale as part of this strategy.
According to African Sun, the decision to sell Monomotapa Hotel is pivotal in evolving the company’s hotel portfolio to stay competitive. Proceeds from the sale will be used to refurbish remaining hotels, including Holiday Inn and Troutbeck.
“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,” the company said in a statement on Thursday.
Two hotel brands, Legacy and Protea, have expressed interest in acquiring Monomotapa Hotel. African Sun plans to redirect its focus to Victoria Falls, where investor interest is growing due to increasing tourist arrivals.
Earlier this month, African Sun terminated agreements to sell Great Zimbabwe Hotel and Beitbridge Express Hotel to TD Hotels & Leisure (Private) Limited. The company is exploring alternative options for disposing of these assets.
African Sun’s strategic shift involves negotiating the disposal of additional hospitality assets, classified as a “Category 1” transaction.
Shareholders have been advised to exercise caution and consult professional advisers due to the potential material effect on the company’s shares.
The company’s portfolio includes notable hotels such as Elephant Hills, Caribbea Bay, Hwange Safari Lodge, and The Victoria Falls Hotel, co-run with Meikles Limited. Meikles Limited is also undergoing a similar process, disposing of assets pending shareholder approval.
African Sun reported a 14% increase in revenue to US$25.6 million in the half-year to June, driven by firmer Average Daily Rates and improved hotel occupancy.
The company’s strategic overhaul aims to unlock value and enhance competitiveness in Zimbabwe’s hospitality industry.
