News / National
Victoria Falls to get two new upmarket hotels
08 Nov 2024 at 07:24hrs | Views
Zimbabwe's premier tourist destination, Victoria Falls, is set to see the construction of two luxury hotels, valued at a combined US$114.3 million, which will significantly boost the city's hospitality offerings. According to the Zimbabwe Investment and Development Agency (ZIDA), the new developments include a US$49 million four-star hotel and a US$65.3 million five-star resort, projects expected to attract both high-end tourists and investors.
The four-star hotel, part of the Mosi oa Tunya Hospitality Real Estate Investment Trust (REIT), will be the first to list on the Victoria Falls Stock Exchange (VFEX). The property will occupy a 5.61-hectare site, offering 180 rooms, including 60 executive suites, six twin suites, deluxe restaurants, a conference center, an infinity pool, and a wildlife watering hole. The construction is anticipated to begin by the end of this year and be completed by late 2026, ZIDA stated. The promoters have already secured 51% of the funding and are actively seeking the remaining US$24 million through equity and debt financing.
"Cresta Hotels will manage the property, which is projected to yield an internal rate of return (IRR) of 16.3%. The location, coupled with the REIT listing on VFEX, makes this an attractive investment with flexibility for investors to exit via VFEX REIT units," ZIDA noted in its prospectus.
The more expansive US$65.3 million Victoria Falls Resort & Spa will be constructed through a Public-Private Partnership (PPP) between Victoria Falls City and Lamcent Capital, a private Zimbabwean company. The resort will sit along the Zambezi River and offer 160 rooms in a recently constructed, five-star facility. With a 500-year concession period, the resort is poised to become a prominent player in the local tourism industry, rivalling Zambia's Radisson Blu in Livingstone.
To date, the project has secured US$6.8 million, with promoters seeking an additional US$56 million in capital. The Victoria Falls Resort & Spa has an IRR of 12.4%, a net present value (NPV) of US$13.6 million, and a payback period of 12 years, making it a compelling long-term investment, ZIDA added.
With Cabinet approval and asset status from the Insurance and Pensions Commission (IPEC), the project is set to appeal to pension funds, as investors will have a voice in the board's decision-making. The project also includes buyback assurances, with promoters offering to repurchase up to 25% of investors' equity upon exit.
Tourism, a priority growth sector in Zimbabwe, is expected to drive economic transformation under the National Tourism Recovery and Growth Strategy, which aims to expand the tourism economy to US$5 billion by 2025. The two hotels align with this strategy and are expected to help Victoria Falls meet the demand for luxury accommodations while enhancing Zimbabwe's status as a top-tier global tourism destination.
The four-star hotel, part of the Mosi oa Tunya Hospitality Real Estate Investment Trust (REIT), will be the first to list on the Victoria Falls Stock Exchange (VFEX). The property will occupy a 5.61-hectare site, offering 180 rooms, including 60 executive suites, six twin suites, deluxe restaurants, a conference center, an infinity pool, and a wildlife watering hole. The construction is anticipated to begin by the end of this year and be completed by late 2026, ZIDA stated. The promoters have already secured 51% of the funding and are actively seeking the remaining US$24 million through equity and debt financing.
"Cresta Hotels will manage the property, which is projected to yield an internal rate of return (IRR) of 16.3%. The location, coupled with the REIT listing on VFEX, makes this an attractive investment with flexibility for investors to exit via VFEX REIT units," ZIDA noted in its prospectus.
To date, the project has secured US$6.8 million, with promoters seeking an additional US$56 million in capital. The Victoria Falls Resort & Spa has an IRR of 12.4%, a net present value (NPV) of US$13.6 million, and a payback period of 12 years, making it a compelling long-term investment, ZIDA added.
With Cabinet approval and asset status from the Insurance and Pensions Commission (IPEC), the project is set to appeal to pension funds, as investors will have a voice in the board's decision-making. The project also includes buyback assurances, with promoters offering to repurchase up to 25% of investors' equity upon exit.
Tourism, a priority growth sector in Zimbabwe, is expected to drive economic transformation under the National Tourism Recovery and Growth Strategy, which aims to expand the tourism economy to US$5 billion by 2025. The two hotels align with this strategy and are expected to help Victoria Falls meet the demand for luxury accommodations while enhancing Zimbabwe's status as a top-tier global tourism destination.
Source - The Herald
