AFRICAN SUN TO REACQUIRE FULL STAKE IN VICTORIA FALLS HOTEL

African Sun has signed a cessation agreement with Meikles Hospitality to re-acquire the 50 percent share in The Victoria Falls Hotel Partnership held by Meikles since 1998, in a move the group says will consolidate full ownership of one of Zimbabwe’s most iconic hotel properties.

Shareholders and the public have been advised that the deal, signed with the landlord’s blessing and consent, remains subject to final regulatory approvals. As part of the agreement with Meikles and associated approvals granted by the landlord, Emerged Railways Properties, the Victoria Falls Hotel will undergo further refurbishment, to be funded entirely by African Sun.

To finance both the acquisition of Meikles’ leasehold interest and the associated US$11 million refurbishment of the hotel, the African Sun board has resolved to dispose of the group’s Holiday Inn portfolio, which comprises hotels in Harare, Bulawayo and Mutare.

The planned disposals remain subject to a number of required consents. These include approval from the InterContinental Hotel Group (IHG) for continued use of the Holiday Inn franchise at the properties, sign-off from the NRZ Contributory Pension Fund as landlord of the Harare and Bulawayo hotels, and clearance from the Competition and Tariff Commission.

Under the timeline outlined by African Sun, full management and operational control of the Victoria Falls Hotel is scheduled to transfer to the group in September 2026, while handover of the Holiday Inn properties to their new owners is planned for 1 January 2027.

The restructuring marks a significant strategic shift for African Sun, positioning the group to hold full ownership and control of the historic Victoria Falls Hotel, a property long regarded as one of the flagship assets in Zimbabwe’s tourism and hospitality sector, while stepping back from its Holiday Inn-branded city hotels in Harare, Bulawayo and Mutare.

The Victoria Falls Hotel has operated as a partnership between African Sun and Meikles Hospitality since 1998, with the latter’s 50 percent stake now set to revert fully to African Sun once the transaction and associated approvals are finalised. The planned refurbishment is expected to further enhance the property ahead of the change in ownership structure.

African Sun has indicated that further updates will follow as the various regulatory and consent processes progress. The group’s statement was issued as part of a formal portfolio update to shareholders and the public, under the banner “Experience. Explore. Enjoy.”