TOP hospitality group, African Sun has tabled plans to offload the Great Zimbabwe Hotel in Masvingo and the Beitbridge Express Hotel to TD Hotels & Leisure (Private) Limited.
In a recent notice to shareholders, African Sun (ASUN) said the two businesses are not a part of the group’s future plans anymore.
“The Great Zimbabwe Hotel and associated hotel business, in Masvingo will be disposed of for a gross consideration of US$4,445,000.00 while the disposal of the Beitbridge Express Hotel, in Beitbridge for a gross consideration of $2,500,000.00,” said the group.
This follows the group’s resolution reached March 22, 2024 where the board of ASUN resolved to dispose of one of the company’s assets, namely the Great Zimbabwe Hotel (GZH), while the Beitbridge Express Hotel (BEH) 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 executed on July 18 this year.
Subsequently, negotiations for the sale of the Great Zimbabwe Hotel were held with the same prospective purchaser and an Agreement of Sale was executed on August 15, 2024.
“ASUN has enjoyed a considerable turnaround in fortunes over the past three years post the COVID-19 pandemic. 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,” the concern said.
The developments were prompted by the 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.
TD Hotels and Leisure (Private) Limited offered to purchase Stand 583 Beitbridge Township measuring 7,8339 Hectares held under Deed of Transfer No. 665/2010 for a consideration of US$2,500,000.00.
“The Purchaser shall pay the purchase price for each transaction in full into ASUN’s nominated account no later than 45 days after the signing of the respective Agreements of Sale. The effective date of the transactions contemplated above is November 1, 2024,” ASUN said. — NewZimbabwe
