Meikles abandons sale of Victoria Falls Hotel stake

Meikles Limited has reversed its earlier decision to sell its stake in the Victoria Falls Hotel, citing a "highly encouraging" outlook for Zimbabwe's tourism sector. The group operates the iconic hotel in partnership with African Sun Limited and had been considering selling to Albwardy Investments, the Dubai-based firm that acquired Meikles Hotel five years ago.

The proposed sale had sparked a boardroom dispute last year, with former directors accusing then-chairman John Moxon of pushing the deal without proper consultation with African Sun. The group's decision to retain the asset comes amid improving prospects for tourism and international recognition for Zimbabwe as a top travel destination.

In a statement accompanying Meikles' half-year results for the period ending August 31, 2025, chairman Fayaz King said the group's earlier plan to divest was abandoned due to the sector's positive trajectory.

"The Board has revised its earlier decision to divest the group's interest in hospitality operations. The outlook for tourism remains highly encouraging. Notably, Forbes has named Zimbabwe the top global destination to visit in 2025. This international recognition is expected to elevate the country's tourism profile and drive growth in international arrivals," King said.

He added that retaining the stake would strengthen the hospitality division and support the turnaround of the diversified group, which has been facing operational challenges.

Financial Performance
Meikles' half-year results showed a widening after-tax loss of ZWG165.7m, up from ZWG1.5m in the prior year, reflecting difficult macroeconomic conditions. The supermarket segment remained the primary revenue contributor, accounting for 98% of turnover, but suffered from power outages and high operating costs.

"While the repeal of Statutory Instrument (SI) 81A through SI 34 of 2025 has improved the ability of formal retailers to compete with informal operators, trading conditions remain constrained. Tight monetary policy has contributed to price stability but suppressed consumer demand," King said.

Despite challenges, group revenue rose to ZWG6bn (up from ZWG5.4bn), and EBITDA increased by 74% in inflation-adjusted terms to ZWG70.7m. Interest expenses amounted to ZWG33.4m, with an exchange loss of ZWG65.1m following the remeasurement of US dollar-denominated trade payables.

King emphasised that the group's solvency and liquidity remain sound, providing a stable foundation for operations. Supermarkets are preparing for the festive season, traditionally a peak revenue period.

The board decided not to declare an interim dividend, opting to preserve cash amid the challenging operating environment. Meikles said it remains cautiously optimistic about performance across all segments for the remainder of the financial year.

The group's turnaround strategy and decision to retain the Victoria Falls Hotel stake signal confidence in Zimbabwe's tourism recovery, bolstered by international recognition and expected growth in visitor arrivals.