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Oliver Kazunga, Harare Bureau

ZIMBABWE Stock Exchange (ZSE)-listed hospitality group, African Sun Limited, plans to dispose of one of its key properties, Monomotapa Hotel Crowne Plaza in Harare, and reinvest the proceeds into other group operations, including the ongoing refurbishment programme.

In a statement, the hotel group said it had embarked on a strategic alignment of its hotel portfolio to better adapt to evolving trends within the domestic and international hospitality industry.

Against this background, African Sun has successfully amalgamated with Dawn Properties, sharpening the hospitality concern’s focus on managing and operating distinctive hotels and properties across Zimbabwe.

This strategic shift underscores the group’s commitment to delivering special guest experiences, rather than allowing Dawn Properties to primarily function as a property-owning company.

And to actualise this vision, African Sun has embarked on an ambitious portfolio refurbishment programme, driven by the recruitment of top local executive talent with extensive international hospitality experience.

“The board has therefore prioritised and approved a strategic plan that includes the selective disposal of certain non-core assets.

“This approach aims to reallocate resources to more promising opportunities within the portfolio.

“A pivotal decision in this strategy is the planned sale of African Sun’s flagship property, the historic Monomotapa Hotel in Harare, which celebrated its 50th anniversary in April 2024.

“The proceeds from this sale will be reinvested back into the portfolio and ongoing refurbishment programmes,” said African Sun, adding that the hotel portfolio should evolve to stay competitive in the market.

It is hoped that the group’s strategic consolidation would yield significant benefits to both guests and shareholders, enabling the group to ultimately explore new opportunities in Victoria Falls and other considered destinations across Zimbabwe.

The hotel group said its success lay in the rapid and impactful execution of the renovation and refurbishment programmes.

In the post-Covid-19 era, two of the group’s 10 properties have already undergone comprehensive facelift, with focus now shifting towards securing capital to modernise the remaining properties to ensure they meet the highest standards of quality and comfort.

The group’s other hotels within Zimbabwe are Elephant Hills Resort, The Victoria Falls Hotel, Holiday Inn (Harare), Holiday Inn (Bulawayo), Holiday Inn (Mutare), Troutbeck Resort, Caribbea Bay Resort, Hwange Safari Lodge, and Great Zimbabwe Hotel.

Meanwhile, in the half year ended June 30, 2024, African Sun’s financial performance showed improvements in revenue and operating profit—however, a loss after tax of US$2,17 million (2023: US$1,81 million) was recorded, largely driven by non-recurring costs.

During the period under review, the group’s revenue totalled US$25,58 million, reflecting a 14 percent increase from the same period last year.

The improved performance was driven by firmer average daily rates at US$112, an increase of 9 percent from US$103 during the comparable period.

Hotel occupancy performance was also positive, closing the half year at 50 percent, a four percentage points increase compared to the corresponding period in 2023.

The group’s operating expenses, excluding depreciation, at US$14,09 million, increased by 1 percent compared to the same period last year despite the inflationary pressures experienced in the first quarter of the year.

Through constant monitoring of costs and improved procurement processes, African Sun managed to contain the overheads amid high risk of price distortions after the introduction of the new currency.