African Sun Limited to sell Great Zimbabwe Hotel for US$4.2M to fund property upgrades

ZIMBABWE – African Sun Limited (AfSun) has announced it is divesting its Great Zimbabwe Hotel along with its hotel operations in Masvingo to the Mewame Family Trust for US$4.2 million, a strategic move designed to generate capital for refurbishing its other properties.

AfSun informed shareholders that the company had experienced a notable turnaround over the past four years following the Covid-19 pandemic, marked by executive changes.

To expedite the refurbishment of its key hotels, the board decided to support capital‐raising efforts by divesting selected assets, including the Great Zimbabwe Hotel, which had contributed only marginally to profitability.

It was reported that the Mewame Family Trust had approached AfSun and entered negotiations for the outright purchase of the hotel’s business and assets, culminating in a sale agreement on January 28, 2025.

Under the deal, the trust proposed to acquire the hotel and a parcel of land known as Mundells Plot A—measuring 20.4272 hectares in the District of Victoria, held under title deed 1747/2010—for US$3.2 million, as well as the hotel operations for US$1 million as a going concern.

AfSun stated that the transaction was subject to conditions including receipt of full payment within agreed timeframes, successful due diligence, and, if required, approval from Exchange Control and the Competition and Tariff Commission by April 1, 2025; the effective date of the deal is also April 1, 2025.

The Mewame Family Trust, a notable player in Zimbabwe’s tourism and property development sectors based in Harare, aims to expand its tourism portfolio through this acquisition.

AfSun, a leading hotel asset management firm listed on the Victoria Falls Stock Exchange, manages ten hotels across Zimbabwe, owning seven properties and leasing three.

In a trading update for the quarter ended September 30, 2024, the company reported revenue of US$18.1 million—a 24 percent increase over the same period last year—with year‐to‐date revenue reaching US$43.7 million, reflecting an 18 percent growth.

This performance was driven by higher occupancy, improved average daily rates, and increased food, beverage, and real estate revenue.

The domestic market accounted for 71 percent of room nights sold, while international arrivals grew from 26 to 29 percent, and overall occupancy improved by seven percentage points due to stronger demand for MICE events in resort and city hotels.

These moves underscore AfSun’s commitment to portfolio revitalization and long‐term growth in Zimbabwe’s hospitality market.

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