News / Local
African Sun asset stripping continues
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Hospitality giant African Sun Limited (ASL) has announced plans to sell its iconic Caribbea Bay Resort in Kariba, marking the latest move in the company's continued disposal of non-core assets.
Situated on the shores of Lake Kariba, Caribbea Bay Resort is renowned for its Mediterranean-style architecture and relaxed holiday ambience. The 83-room facility, including six suites, is a popular destination for both Zimbabwean tourists and international visitors, offering year-round sunshine, water sports, and cultural excursions.
In a cautionary statement issued to shareholders, ASL confirmed that the resort has officially been placed on the market alongside Harare's Monomotapa Hotel as part of a broader strategy to unlock value from underperforming or non-strategic assets.
"Further to the ongoing cautionary statements, the last one of which was issued on April 25, 2025, shareholders and the investing public are advised that, in keeping with the strategy of unlocking value, negotiations for the disposal of a selection of hospitality assets are still underway," the company said.
ASL added that, should negotiations succeed, the transaction will be classified as a "Category 1" deal under Zimbabwe Stock Exchange listing rules, necessitating shareholder approval at an extraordinary general meeting to be convened in due course.
The Monomotapa Hotel, a longstanding fixture in Harare's skyline, is also expected to be sold by June 30, with a current valuation of US$15 million.
ASL's decision to divest from Caribbea Bay is a strategic realignment meant to streamline its portfolio around key brands and locations. Once the sale is concluded, the company's hotel segment will continue to include properties under the InterContinental Hotel Group's Holiday Inn brand - such as Holiday Inn Harare, Bulawayo, and Mutare - along with high-profile local brands including Elephant Hills Resort and Conference Centre, Hwange Safari Lodge, Troutbeck Resort, and The Victoria Falls Hotel.
The Caribbea Bay Resort, which boasts panoramic lake views, has been a launching point for tours of the Kariba Dam and cultural experiences centered on the Tonga people and the Nyaminyami river god folklore.
Despite its rich history and strong tourism potential, the resort's sale underscores ASL's ongoing pivot towards more profitable or strategically aligned operations.
"Shareholders and the investing public are, therefore, advised to continue exercising caution when dealing with the company's securities until advised of the conclusion of the said ongoing processes," ASL said.
The announcement comes amid growing pressure on local hospitality firms to enhance capital efficiency and adapt to shifting market dynamics.
Situated on the shores of Lake Kariba, Caribbea Bay Resort is renowned for its Mediterranean-style architecture and relaxed holiday ambience. The 83-room facility, including six suites, is a popular destination for both Zimbabwean tourists and international visitors, offering year-round sunshine, water sports, and cultural excursions.
In a cautionary statement issued to shareholders, ASL confirmed that the resort has officially been placed on the market alongside Harare's Monomotapa Hotel as part of a broader strategy to unlock value from underperforming or non-strategic assets.
"Further to the ongoing cautionary statements, the last one of which was issued on April 25, 2025, shareholders and the investing public are advised that, in keeping with the strategy of unlocking value, negotiations for the disposal of a selection of hospitality assets are still underway," the company said.
ASL added that, should negotiations succeed, the transaction will be classified as a "Category 1" deal under Zimbabwe Stock Exchange listing rules, necessitating shareholder approval at an extraordinary general meeting to be convened in due course.
The Monomotapa Hotel, a longstanding fixture in Harare's skyline, is also expected to be sold by June 30, with a current valuation of US$15 million.
ASL's decision to divest from Caribbea Bay is a strategic realignment meant to streamline its portfolio around key brands and locations. Once the sale is concluded, the company's hotel segment will continue to include properties under the InterContinental Hotel Group's Holiday Inn brand - such as Holiday Inn Harare, Bulawayo, and Mutare - along with high-profile local brands including Elephant Hills Resort and Conference Centre, Hwange Safari Lodge, Troutbeck Resort, and The Victoria Falls Hotel.
The Caribbea Bay Resort, which boasts panoramic lake views, has been a launching point for tours of the Kariba Dam and cultural experiences centered on the Tonga people and the Nyaminyami river god folklore.
Despite its rich history and strong tourism potential, the resort's sale underscores ASL's ongoing pivot towards more profitable or strategically aligned operations.
"Shareholders and the investing public are, therefore, advised to continue exercising caution when dealing with the company's securities until advised of the conclusion of the said ongoing processes," ASL said.
The announcement comes amid growing pressure on local hospitality firms to enhance capital efficiency and adapt to shifting market dynamics.
Source - the chronicle
