Hotel and leisure chain, African Sun said on Friday it terminated a deal it entered into over three and a half years ago with South African group, Legacy Hospitality Management Services Limited (Legacy) to manage five of its local hotels.
The hotels, which were put under Legacy management and re-branded include Elephant Hills in Victoria Falls, Monomotapa in Harare, Troutbeck Resort in Nyanga, Hwange Safari Lodge and the Kingdom at Victoria Falls Hotel.
At the time it was largely believed that deal to bring the Legacy franchise was pushed by African Sun’s controlling shareholders Brainworks Capital Management.
The private equity investment and advisory firm, Brainworks Capital Management had boosted its shareholding in African Sun to 55,11 percent after the closure of its mandatory offer to the hotelier’s minority shareholders in May 2015.
In respect of the latest development, African Sun said handover/takeover process was in the process.
“We would like to assure our stakeholders that this termination will not adversely affect the delivery of services at the relevant hotels,” said African Sun company secretary Venon Musimbe in a statement on Friday.
“If anything, we remain firmly focused on providing excellent service to our customers and growing value for all our shareholders.”
African Sun’s assets in Zimbabwe are Holiday Inn— Harare, Elephant hills — Victoria Falls, Holiday Inn — Bulawayo, Troutbeck Nyanga, Carribea Bay — Kariba, Beitbridge Express, Crowne Plaza Monomotapa — Harare, Great Zimbabwe — Masvingo, Victoria Falls Hotel, Kingdom at Victoria Falls and Hwange Safari lodge.
Last month, the hospitality group announced a 110 percent jump to US$10,14 million in profit for the year to December 2018 from $4,81 million posted in the prior comparable period.
Total revenue grew 32 percent to us$68, 50 million from 51,82 million reported last year spurred by 7 percentage point’s increase in occupancy to 59 percent from 52 percent recorded in the same period in 2017.
Revenue growth was also aided by 17 percent growth in average daily rate (ADR) to US$109 from US$93.
The group posted US$17,13 million EBIDTA, 78 percent above last year a result of growth in revenue and cost management.
The group earnings per share went up 111 percent to 1,18 cents from 0,56 cents.