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HOSPITALITY group, African Sun Limited, has terminated the much-publicised disposal of its two properties, the Beitbridge Express Hotel and Great Zimbabwe Hotel in Masvingo for a combined US$6,9 million to TD Hotels and Leisure (Private) Limited.
TD Hotels and Leisure (Private) Limited is an upcoming local hospitality concern.
African Sun had initially said the decision to sell the properties was informed by the need to complement capital generation by selling selected assets considered not to be core to the group’s future.
However, in an announcement to shareholders, the Victoria Falls Stock Exchange-listed firm told its shareholders the decision had changed.
“Regarding the disposal of the Great Zimbabwe Hotel and associated hotel business in Masvingo for a gross consideration of US$4 445 000, and the disposal of the Beitbridge Express Hotel, in Beitbridge for a gross consideration of US$2 500 000, all to TD Hotels & Leisure (Private) Limited.
“The board advises of the termination of the previously announced agreements with TD Hotels & Leisure (Private) Limited, classified as a Category three0 transactions,” said the group in the latest trading update.
The decision to dispose of GZH was reached in March this year while the Beitbridge Express Hotel (BEH) has been held as an asset available for sale since September 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 GZH were held with the same prospective buyer and an agreement of sale was executed last month. The hospitality concern manages 10 hotels strategically located throughout Zimbabwe.
A Real Estate arm complements its core business.
Of the 10, the group owns seven properties, which are: Holiday Inn Mutare, Monomotapa Hotel, Troutbeck Resort, Elephant Hills Resort and Conference Centre, Hwange Safari Lodge, GZH and Caribbean Bay Resort and leases three properties — Holiday Inn Harare, Holiday Inn Bulawayo and The Victoria Falls Hotel.
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