African Sun Initiates Strategic Overhaul by Selling Historic Monomotapa Hotel
African Sun Limited, a prominent hotel asset management company listed on the Victoria Falls Stock Exchange, is taking significant steps to reshape its business strategy by divesting from non-core assets and focusing on new growth opportunities. Central to this transformation is the decision to sell the historic Monomotapa Hotel in Harare, which has been a cornerstone of the company’s portfolio for 50 years.
The Monomotapa Hotel, formerly known as Crowne Plaza, celebrated its 50th anniversary in April 2024. The sale is seen as a pivotal move in the company’s efforts to modernize its hotel offerings and maintain competitiveness in a challenging hospitality market. Proceeds from this sale are expected to be reinvested into refurbishing other properties in the company’s portfolio, including the Holiday Inn and Troutbeck.
In a statement, African Sun emphasized the importance of the Monomotapa Hotel sale: “A pivotal decision in this strategy is the planned sale of African Sun’s flagship property, the historic Monomotapa Hotel in Harare.” This strategic shift comes as the company seeks to capitalize on increasing investor interest in Victoria Falls, a region that is experiencing a surge in tourist arrivals.
Interest in acquiring the Monomotapa Hotel has already been expressed by two notable hotel brands, Legacy and Protea, indicating a robust market for high-quality hospitality assets. The company has also been active in seeking alternatives for other non-core properties, having recently terminated agreements for the sale of the Great Zimbabwe Hotel and Beitbridge Express Hotel to TD Hotels & Leisure (Private) Limited.
As part of this strategic overhaul, African Sun is negotiating the disposal of additional hospitality assets categorized as “Category 1” transactions. The company has advised shareholders to exercise caution and consult with professional advisers, given the potential impact these moves may have on share value.
African Sun’s current portfolio includes several well-known hotels such as Elephant Hills, Caribbea Bay, and Hwange Safari Lodge. Additionally, the Victoria Falls Hotel is co-managed with Meikles Limited, which is also in the process of asset disposals.
Financially, African Sun reported a 14% increase in revenue to US$25.6 million for the half-year ending in June, driven by improved Average Daily Rates and hotel occupancy. However, this positive growth comes amid ongoing challenges in Zimbabwe’s hospitality industry, prompting the company’s strategic shift aimed at unlocking value and enhancing its competitive edge.
The sale of the Monomotapa Hotel marks a significant moment in African Sun’s evolution, reflecting a broader trend within the industry as companies reassess their portfolios to navigate a changing economic landscape.
