• Meikles’ 28-year Victoria Falls Hotel interest has moved into a disposal agreement with African Sun
• The undisclosed price must account for lease cash flows, renewal rights and recovering tourism demand
• Shareholders need clarity on proceeds, tax costs and Meikles’ capital-redeployment plan

Harare  -  Meikles Limited is progressing the disposal of its 50% Victoria Falls Hotel operating interest, 28 years after acquiring the stake in 1998. The Zimbabwe Stock Exchange-listed group holds interests in TM Pick n Pay, commercial property and security services.

African Sun Limited has emerged as the disclosed counterparty after months of cautionary announcements. Meikles Hospitality has entered a cessation agreement with African Sun to dispose of its undivided 50% interest in the Victoria Falls Hotel operating business.

Meikles first referred to potential disposal discussions in June and issued further notices in July and August. The 18 September statement advances that process by naming African Sun and confirming that the parties have entered an agreement.

Meikles’ board had resolved to sell the interest before February 2025 and classified it as held for sale in the group’s annual accounts. A December 2025 decision retained the stake, followed by renewed sale discussions in June 2026 and the current agreement with African Sun.

African Sun already holds the other 50% interest in the operating partnership. Shareholder approval would enable it to consolidate the full operating interest in the hotel business.

Victoria Falls Hotel has remained Meikles’ last hospitality interest after the sale of Meikles Hotel in Harare and the disposal of the Mentor Africa holding. The group’s connection with hotels extends back more than a century, making the disposal the completion of a long corporate withdrawal from hospitality.

Albwardy Investments bought Meikles Hotel in Harare for US$20 million. The Dubai-based group later acquired Kingdom Hotel in Victoria Falls for US$30 million.

Albwardy’s acquisitions establish recent transaction values for major Zimbabwe hotel assets. Meikles’ proposed transaction covers a 50% lease-and-operations interest that African Sun already shares, placing the current disposal within a different transaction structure.

Emerged Railways Properties owns the 149-room Victoria Falls Hotel property. Meikles and African Sun operate the hotel under a revenue-based lease valid to 2036, with a first right to renew for a further 10 years.

The operating partnership pays 13.5% of hotel revenue to the property owner. Meikles is selling its share of income generated from rooms, food, beverages, events and leisure services, together with its share of the lease rights and future renewal opportunity.

Meikles’ 2025 accounts recorded ZWG105.2 million in revenue from its share of the partnership. Operating profit reached ZWG21.6 million, operating cash flow reached ZWG54.1 million and profit after tax came in at ZWG12.4 million.

Room occupancy increased to 39% from 37% during the year to February 2025. Revenue per available room rose 6% in United States dollar terms, leaving material room capacity available for higher tourism volumes to convert into hotel revenue.

Immigration authorities processed 1.23 million travellers through the north-western region in 2025, 7.87% above the prior year. The traffic growth expands the pool of potential accommodation, food, event and leisure customers in Victoria Falls.

Management has cited limited hospitality scale and market synergy as the reason for the planned exit. The group’s earlier hotel disposals left Victoria Falls Hotel as a stand-alone partnership interest alongside its retail, property and security operations.

TM Pick n Pay accounted for 99.6% of Meikles’ group revenue in the 2025 financial year. The disposal would concentrate the group further around its core operating businesses and release capital from hospitality.

Meikles has not disclosed the consideration, valuation, tax outcome, transaction costs, payment structure or intended use of proceeds. African Sun has also not disclosed the funding terms or the operating plans attached to its acquisition of the remaining interest.

Shareholders require a circular that sets out the hotel’s earnings, net assets, independent valuation and lease value. Meikles also needs to quantify the earnings and asset value expected from the proceeds after the transaction closes.

African Sun would receive full exposure to the hotel’s occupancy, room-rate, cost and capital-investment outcomes. Meikles would exchange a 28-year tourism-linked operating interest for capital directed into its remaining portfolio.

The EGM will determine whether Meikles’ return to a disposal strategy creates adequate value from the Victoria Falls Hotel stake. The transaction price and capital-deployment plan will provide the measure.