AFRICAN Sun Limited plans to sell its Holiday Inn properties in Bulawayo, Harare, and Mutare to generate approximately US$11 million needed to reclaim a 50 percent share in The Victoria Falls Hotel Partnership from Meikles Hospitality and finance the necessary refurbishment.
In a portfolio update on Thursday, the group said the acquisition of Meikles Hospitality’s interest and refurbishment of the iconic property would require about US$11 million, prompting the board to approve the disposal as part of a broader portfolio restructuring exercise.
“In order to finance the acquisition of Meikles leasehold interest and the associated $11 million dollar refurbishment of the hotel, the Board of African Sun have resolved to dispose of the group’s Holiday Inn portfolio, which consist of hotels in Harare, Bulawayo and Mutare,” it said.
The proposed transaction follows the signing of a cessation agreement between African Sun and Meikles Hospitality, with the landlord’s consent and remains subject to final regulatory approvals.
“Shareholders and the public are advised that, subject to final regulatory approvals, African Sun has, with the landlord’s blessing and consent, signed a cessation agreement with Meikles Hospitality to re-acquire the 50 percent share in The Victoria Falls Hotel Partnership held by Meikles since 1998,” the company said.
The transaction will give African Sun full ownership of the Victoria Falls Hotel Partnership and pave the way for a major refurbishment of the landmark property.
The group said the hotel’s landlord, the Emerged Railways Properties, had approved the refurbishment, which will be funded entirely by African Sun.
“As part of the agreement signed with Meikles and associated approvals granted by the landlord, the Emerged Railways Properties, the hotel will undergo further refurbishment, to be funded entirely by African Sun,” said the group.
The disposal of the Holiday Inn properties will require consent from InterContinental Hotels Group (IHG), the franchisor of the Holiday Inn brand, as well as approval from the NRZ Contributory Pension Fund, landlord of the Harare and Bulawayo properties, and clearance from the Competition and Tariff Commission.
African Sun targets September 2026 to assume full management and operational control of The Victoria Falls Hotel, while handover of the Holiday Inn properties is planned for 1 January 2027, subject to the required approvals.
-herald
