News / National
Zimbabwe Govt Pension Fund acquires Monomotapa Hotel
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Zimbabwe's largest hospitality group, African Sun Limited (ASL), has agreed to sell the historic Monomotapa Crowne Plaza Hotel and its adjacent car park to the Public Service Pension Fund in a deal valued at US$18 million. The transaction, subject to regulatory approval, marks another significant step in government's deepening involvement in the tourism and hospitality sector.
Monomotapa, located in the heart of Harare's central business district, is one of Zimbabwe's most recognisable hotels. It has long stood as a landmark of both local hospitality and post-independence urban development. According to a shareholder circular released by ASL, the board of directors approved the deal during a round-robin meeting held on May 7, 2025.
The sale includes the hotel, car park, and all related operations, assets, land, and buildings as a going concern. ASL said payment is expected within 30 days of signing the final agreements.
"The board identified this transaction as a strategic opportunity in line with the company's ongoing portfolio optimisation and capital reallocation strategy," ASL said.
The sale is part of a broader shift by ASL toward consolidating a leaner, high-performing portfolio focused on core tourism assets. Proceeds from the Monomotapa transaction will be redirected to refurbish key assets such as the Victoria Falls Hotel, Elephant Hills Resort, and Holiday Inn properties.
ASL added that the divestment will significantly boost its liquidity position, enabling the company to meet capital expenditure demands, support its approved share buy-back programme, and strengthen its overall balance sheet.
"This improved financial flexibility will reinforce the company's long-term sustainability and enable continued investment in core business operations," the company stated. "The move supports the company's shift to a smaller, high-quality hotel portfolio with enhanced operational focus, scalability, and profitability."
Monomotapa was previously valued at around US$15 million, and the final US$18 million purchase price is considered a premium offer in current market conditions. The hotel has faced performance challenges in recent years, particularly amid Zimbabwe's broader economic volatility and persistent challenges in the tourism industry.
The transaction marks a continued expansion by government-linked institutions into Zimbabwe's hospitality sector. The Public Service Pension Fund joins the National Social Security Authority (NSSA), which already holds over 90% of Rainbow Tourism Group (RTG), as a major player in the market. This growing government presence comes amid a lack of major private investment in the sector.
RTG itself had expressed interest in acquiring Monomotapa earlier this year. "It's a great product, well located," RTG CEO Tendai Madziwanyika said in an interview. "If an opportunity presented itself, we would have seriously considered it."
ASL, meanwhile, has been streamlining its operations in line with its new strategy. In June, the group announced it was selling the Caribbea Bay Resort in Kariba. This followed the December 2024 sale of the Great Zimbabwe Hotel in Masvingo and the closure of Sun Leisure Tours, its travel and transfers division.
The Monomotapa sale also marks a sharp reversal from previous expansion plans. ASL had once struck a deal with Harare City Council to acquire two hectares of land in Harare Gardens, including the Les Brown Swimming Pool area and the hotel's car park, at a cost of US$1.76 million. At the time, the company envisioned building an open-air restaurant, a bar, a shopping mall, office space, residential apartments, and a large conference centre to position Monomotapa as a multi-use hospitality hub.
Council records from 2010 also show that ASL had entered into a memorandum of understanding for a joint venture to expand the hotel, with ambitions to integrate it into a broader commercial and cultural district that would include the National Art Gallery and nearby city facilities.
However, years of economic instability, currency volatility, and international isolation have stunted tourism development across Zimbabwe. Despite signs of recovery in tourist arrivals, local investment remains cautious, with government-linked institutions now leading many of the largest deals in the sector.
The sale of Monomotapa represents both a nostalgic turning point for one of Harare's most storied establishments and a strategic pivot for African Sun as it navigates the challenges and opportunities of Zimbabwe's evolving tourism landscape.
Monomotapa, located in the heart of Harare's central business district, is one of Zimbabwe's most recognisable hotels. It has long stood as a landmark of both local hospitality and post-independence urban development. According to a shareholder circular released by ASL, the board of directors approved the deal during a round-robin meeting held on May 7, 2025.
The sale includes the hotel, car park, and all related operations, assets, land, and buildings as a going concern. ASL said payment is expected within 30 days of signing the final agreements.
"The board identified this transaction as a strategic opportunity in line with the company's ongoing portfolio optimisation and capital reallocation strategy," ASL said.
The sale is part of a broader shift by ASL toward consolidating a leaner, high-performing portfolio focused on core tourism assets. Proceeds from the Monomotapa transaction will be redirected to refurbish key assets such as the Victoria Falls Hotel, Elephant Hills Resort, and Holiday Inn properties.
ASL added that the divestment will significantly boost its liquidity position, enabling the company to meet capital expenditure demands, support its approved share buy-back programme, and strengthen its overall balance sheet.
"This improved financial flexibility will reinforce the company's long-term sustainability and enable continued investment in core business operations," the company stated. "The move supports the company's shift to a smaller, high-quality hotel portfolio with enhanced operational focus, scalability, and profitability."
Monomotapa was previously valued at around US$15 million, and the final US$18 million purchase price is considered a premium offer in current market conditions. The hotel has faced performance challenges in recent years, particularly amid Zimbabwe's broader economic volatility and persistent challenges in the tourism industry.
The transaction marks a continued expansion by government-linked institutions into Zimbabwe's hospitality sector. The Public Service Pension Fund joins the National Social Security Authority (NSSA), which already holds over 90% of Rainbow Tourism Group (RTG), as a major player in the market. This growing government presence comes amid a lack of major private investment in the sector.
RTG itself had expressed interest in acquiring Monomotapa earlier this year. "It's a great product, well located," RTG CEO Tendai Madziwanyika said in an interview. "If an opportunity presented itself, we would have seriously considered it."
ASL, meanwhile, has been streamlining its operations in line with its new strategy. In June, the group announced it was selling the Caribbea Bay Resort in Kariba. This followed the December 2024 sale of the Great Zimbabwe Hotel in Masvingo and the closure of Sun Leisure Tours, its travel and transfers division.
The Monomotapa sale also marks a sharp reversal from previous expansion plans. ASL had once struck a deal with Harare City Council to acquire two hectares of land in Harare Gardens, including the Les Brown Swimming Pool area and the hotel's car park, at a cost of US$1.76 million. At the time, the company envisioned building an open-air restaurant, a bar, a shopping mall, office space, residential apartments, and a large conference centre to position Monomotapa as a multi-use hospitality hub.
Council records from 2010 also show that ASL had entered into a memorandum of understanding for a joint venture to expand the hotel, with ambitions to integrate it into a broader commercial and cultural district that would include the National Art Gallery and nearby city facilities.
However, years of economic instability, currency volatility, and international isolation have stunted tourism development across Zimbabwe. Despite signs of recovery in tourist arrivals, local investment remains cautious, with government-linked institutions now leading many of the largest deals in the sector.
The sale of Monomotapa represents both a nostalgic turning point for one of Harare's most storied establishments and a strategic pivot for African Sun as it navigates the challenges and opportunities of Zimbabwe's evolving tourism landscape.
Source - The Standard
