Vusumuzi Dube
Rutendo Nyeve, Sunday News Reporter
KINGDOM Hotel that has been operated by African Sun Limited (ASL) in Victoria Falls is set to close for business with effect from 5 January 2023.
This follows an announcement made by African Sun this July that it is exiting the hotel, on notice, after failing to agree fresh lease terms with the owners of the property, First Capital Bank (FCB).
In a leaked letter addressed to a Travel Trade Partner, African Sun CEO Mr Peter Saungweme announced the date of exiting the hotel which will see the company remaining with 10 hotels including two in Victoria falls.
“Further to the formal announcement which African Sun Limited (African Sun) released to the market on 4 July 2022, we would like to inform you that the Kingdom at Victoria Falls Hotel (“the Hotel”) shall be closing for business with effect from 5 January 2023.
“We would like to thank you for your past business and support over the years and look forward to continuing working with you at our other ten hotels, which include the Victoria Falls Hotel and Elephant Hills Resort and Conference Centre which are also situated in the city of Victoria Falls,” said Mr Saungweme on the letter.
While ASL won the tender earlier this year to lease the 294-roomed property owned by Makasa Sun in line with the tender requirements, the country’s largest hotel group has failed to reach an agreement with FCB on the tenure of the lease.
FCB owns 50 percent of Makasa Sun while the remainder is owned by Barclays Pension Fund.
Some of the tender requirements included bringing in an international hotel brand and making substantial investment in rebranding. ASL, which held the leasehold and operated the hotel since 1997, had partnered InterContinental Hotels Group (IHG) as its international brand partner and intended to invest US$6,5 million towards rebranding over a period of 10 years.
@nyeve14
Online Reporter