Meikles Hospitality has received a greenlight from Reserve Bank of Zimbabwe's Exchange Control Authorities to dispose its flagship hotel, Meikles Hotel to a Dubai based firm.
Approval had already been received from shareholders, the Competition and Tariff Commission as well as the Securities and Exchange Commission of Zimbabwe, which regulates the Zimbabwe Stock Exchange.
The hotel is being sold for $20 million to Albwardy Investments and will be operated through its Zimbabwean investment vehicle, ASB Hospitality.
"The directors wish to advise shareholders that approval from Exchange Control Authorities has now been received for the Meikles Hotel disposal,” said company secretary Thabani Mpofu in a notice. “Processes to consummate the transaction are underway."
Meikles Hospitality decided to offload the iconic hotel as it claimed incapacity to raise $30 million needed for the modernisation of guest facilities.
The sale of the hotel, it said, will avoid the necessity of borrowing for support towards export oriented projects.
The group’s revenue for the first nine months ended September 30, 2019 leaped to $32 million from $6 million, a year earlier.
However, Meikles’ room occupancy for the period fell 38% from 45% in the comparative period.
Blogs
