Leading hospitality group, African Sun Limited (ASL), says the ongoing disposal of non-core assets will unlock potential to rejuvenate activity in high-performing units.
Presenting the 2024 annual report, ASL chief executive officer, Laurie Ward, said there is no going back with the disposal of giant outfits which are not reaping much.
“The Group’s strategy is centred on optimising our portfolio by focusing on a smaller, more profitable selection of hotels that prioritise quality and guest experiences. This vision will continue to gain momentum in 2025. Our approach involves divesting of non-core assets and concentrating resources on high-performing properties in prime locations,” he said.
By streamlining operations and enhancing service standards, Laurie said the company aims to deliver consistent experiences that align with evolving guest expectations prompted by the strategy to allow for greater investment in innovative technologies and sustainability initiatives.
“In keeping with this thrust, the Group has sold the Great Zimbabwe Hotel and earmarked Monomotapa Hotel and Caribbea Bay Resort for sale. These disposals will allow for the prioritisation of the refurbishment of the remaining properties within the portfolio, as well as allocating funds for the development of phase 2 of the Marlborough Sunset Views residential stands,” said Ward.
The Hotel’s top three performers for the 2024 financial year were Elephant Hills Resort and Conference Centre, Holiday Inn Harare and Holiday Inn Bulawayo. These contributed 54% to the Group’s total revenue for the year.
The hospitality portfolio achieved a combined annual occupancy of 59% for the period under review, a 7% improvement from the 55% achieved in 2023. This equated to almost 15,854 additional room nights sold during 2024.
“The three branded InterContinental Hotels Group (“IHG”) hotels, namely, Holiday Inn Harare, Holiday Inn Bulawayo, and Holiday Inn Mutare, continue to meet all the requirements of the IHG brand standards, having all passed compliance audits in 2024. Additionally, the lease of both the Holiday Inn Harare and Holiday Inn Bulawayo properties were extended for a further 20-year period,” added Ward.
