African Sun Sells Two Hotels to Fund Refurbishments
African Sun has sold two of its underperforming hotels, raising nearly US$7 million to refurbish its remaining properties. The Great Zimbabwe Hotel, one of the company's least profitable ventures, was sold for US$4.45 million, while the Beitbridge Express Hotel, which has been closed since 2016, fetched US$2.5 million. TD Hotels is the buyer for both properties.
In a statement, African Sun explained, “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.”
Last year, African Sun's hotel occupancy rate climbed to 52%, a six percentage point increase from 2022, surpassing pre-pandemic levels of 46%. Earlier this year, the company reported closing 2023 with US$10.87 million in cash and announced ongoing discussions with banks to secure additional funding for hotel refurbishments.
African Sun Sells Two Hotels to Fund Refurbishments
The sale of the two hotels is expected to accelerate these upgrades. “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 not core to ASUN’s future, including the Beitbridge Express and The Great Zimbabwe hotels,” the company stated.
African Sun currently operates ten hotels. It owns seven properties: Holiday Inn Mutare, Monomotapa, Troutbeck Resort, Elephant Hills, Hwange Safari Lodge, Great Zimbabwe Hotel, and Caribbea Bay Resort.
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Additionally, it leases three properties: Holiday Inn Harare, Holiday Inn Bulawayo, and The Victoria Falls Hotel, which it co-manages with Meikles. The company exited the Kingdom Hotel in Victoria Falls in 2023 following a lease dispute with the property owner.
