African Sun Prepares Partner Meikles Buyout Bid

Oscar J. Jeke- Zim Now Reporter

Hospitality giant African Sun is positioning itself to acquire Meikles Limited’s stake in the Victoria Falls Hotel, signaling a strategic move to strengthen its foothold in the country’s tourism sector.

The company has prepared an offer as it closely monitors Meikles’ next steps amid speculation of a potential sale to Dubai-based Albwardy Investments.

African Sun, which co-owns the hotel with Meikles on a 50-50 basis, views the acquisition as a crucial step in its broader expansion and refurbishment strategy. The company plans to bring in international hotel brands to manage some of its properties once ongoing renovations are completed.

This move follows African Sun’s recent divestment from the Great Zimbabwe Hotel, which it sold for US$4.2 million in February. The company has also put the Monomotapa Hotel up for sale, with proceeds earmarked for upgrading its remaining assets, including Holiday Inn hotels and Troutbeck Resort in Nyanga.

The Hwange Safari Lodge has already undergone renovations, while refurbishment of Elephant Hills is set to commence in the third quarter of 2025.

Meanwhile, African Sun awaits the outcome of Meikles’ deliberations. The potential sale of Meikles’ stake in Victoria Falls Hotel to Albwardy Investments has sparked controversy within Meikles’ leadership.

Reports indicate that a boardroom rift erupted last year, with some former board members accusing chairman John Moxon of pushing the deal without due consultation with African Sun.

African Sun’s commercial executive, Leon Rugara, confirmed that the company has put forward a “compelling offer” for Meikles’ stake. If successful, this buyout would give African Sun full control of the historic property.

In the third quarter of 2024, African Sun posted revenue of US$18.1 million, a 24% increase from the same period in 2023. Year-to-date revenue has climbed to US$43.7 million, reflecting an 18% rise.

This growth has been largely driven by higher occupancy rates, with domestic tourism, particularly conferences, accounting for 70% of its business.