- Strategic Divestment: Asun officially placed the Monomotapa Hotel on the market
- Financial Impact: The sale aims to generate funds for refurbishing remaining properties, including the Holiday Inn and Troutbeck
- Market Interest: Monomotapa Hotel has attracted interest from prominent hotel brands, Legacy and Protea
Harare- The iconic Monomotapa Hotel has officially been placed on the market, as announced by its parent company, African Sun. This development was disclosed through a circular posted on the Victoria Falls Stock Exchange (VFEX) yesterday.
As African Sun's flagship property, the Monomotapa Hotel, with its 50-year legacy, is part of a broader strategy to divest from certain non-core assets while the company seeks new opportunities in Victoria Falls and other markets.
The proceeds from the sale are intended to fund refurbishments of the company’s remaining hotel portfolio, which includes the Holiday Inn and Troutbeck.
In a statement, African Sun noted, "Further to the cautionary statements dated September 10 and October 11, 2024, shareholders and the investing public are advised that negotiations for the disposal of selected hospitality assets are ongoing, in line with our strategy to unlock value."
The circular confirmed that the Monomotapa Hotel is now available for acquisition.
Interest in the property has reportedly been generated from two hotel brands, Legacy and Protea, as African Sun pivots its focus towards the Victoria Falls region, which is experiencing increased investor interest due to rising tourist arrivals.
African Sun has been undergoing significant divestments since 2022, following ceasing the lease of the Kingdom Hotel.
The loss of this 294-room property had a considerable adverse impact on the company's financial performance, contributing to a half-year loss of US$1.8 million, with US$0.75 million attributed to this discontinued operation.
In response to these challenges, African Sun has begun exploring other market opportunities, including the renovation of 46 rooms at Hwange Safari Lodge and enhancements to public areas at Troutbeck.
The company’s initial divestment efforts included placing the Great Zimbabwe Hotel and Beitbridge Express Hotel on the market with an asking price of US$6.9 million.
However, in early October, the company canceled a US$7 million transaction involving two hotels.
This strategic realignment highlights African Sun's commitment to optimizing its asset portfolio while focusing on high-potential markets.
