Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Business

African Sun sells two struggling hotels, uses money to fund upgrades

African Sun has sold two of its underperforming hotels, raising almost US$7 million that will be used to refurbish its remaining operations.

The company is selling the Great Zimbabwe Hotel, one of its least profitable operations, for US$4.45 million. Beitbridge Express Hotel, which has been shut down since 2016, has been sold for US$2.5 million. The buyer is TD Hotels.

“Due to deteriorating trading conditions, the Beitbridge Express Hotel was mothballed in early 2016 while the Great Zimbabwe Hotel has been a marginal contributor to the profitability of the Group over the review period,” African Sun says in a statement.

African Sun’s hotel occupancy rate rose to 52% last year, six percentage points above 2022 and beating the levels of 46% before the pandemic. Earlier this year, African Sun reported that it closed 2023 with US$10.87 million cash in its books, and that it was talking to banks to secure additional funding to refurbish its hotels. The company says the sale of the two hotels will help it upgrade the remaining assets.

“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 ASUN’s future, including the Beitbridge Express and The Great Zimbabwe hotels,” the company says.

African Sun currently operates ten hotels. It owns seven hotels – Holiday Inn Mutare, Monomotapa, Troutbeck Resort, Elephant Hills, Hwange Safari Lodge, Great Zimbabwe Hotel and Caribbea Bay Resort and leases three properties; Holiday Inn Harare, Holiday Inn Bulawayo and The Victoria Falls Hotel. It co-runs the Vic Falls Hotel with Meikles. The company left the Kingdom Hotel in Victoria Falls in 2023 after a lease dispute with the property owner.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
× How can I help you?

Adblock Detected

Chaminukanews24.com is ad-supported, but we notice you've AdBlocker turned on. Kindly turn it off, then refresh the page to proceed.