50-year-old Monomotapa Hotel put on sale

Nyashadzashe Ndoro

Chief Reporter

African Sun Limited has announced that its iconic Monomotapa Hotel in Harare has been placed on sale as part of its strategy to "unlock value" and invest in new opportunities.

The company, which has been operating the 50-year-old hotel since 1971, revealed that negotiations are ongoing with potential buyers. The sale, if successful, will be classified as a "Category 1" transaction, requiring shareholder approval at an Extraordinary General Meeting (EGM).

African Sun stated that the decision to sell the hotel is part of its plan to "evolve" and focus on new opportunities in Victoria Falls and other destinations within Zimbabwe. The company aims to use the proceeds from the sale to refurbish its remaining hotels, including the Holiday Inn hotels and Troutbeck.

The Monomotapa Hotel has reportedly attracted interest from two hotel brands, Legacy and Protea. The sale comes after African Sun canceled a US$7 million deal for two of its other hotels, Great Zimbabwe Hotel and Beitbridge Express Hotel, in October last year.

African Sun's decision to sell the hotel is seen as a strategic move to adapt to changing market conditions and capitalize on growing investor interest in Victoria Falls.

The sale of the Monomotapa Hotel is subject to shareholder approval and the outcome of ongoing negotiations. African Sun has advised shareholders and the investing public to exercise caution when dealing with the company's securities until the conclusion of the sale process.