Johnson Progress

African Sun Limited, a leading hospitality company in Zimbabwe, is considering a formal offer for the sale of its Caribbea Bay Resort in Kariba.

The company confirmed that it has “started engaging with an interested party who has made a formal offer for the property”.

This move is part of African Sun’s broader divestment strategy targeting non-core assets.

The sale of Caribbea Bay Resort follows recent disposals of notable properties, including the Monomotapa Hotel for US$18 million and the Great Zimbabwe Hotel for US$4.2 million.

According to African Sun, the proceeds from these sales will be used to renovate its remaining hotels.

“The company plans to use the money from the sales to renovate its remaining hotels,” said a source.

The hospitality sector in Zimbabwe has been experiencing a decline in occupancy rates, with many hotels struggling to maintain profitability.

“Hotel occupancy has declined,” said an observer, adding that the sale of Caribbea Bay Resort could be a sign of economic challenges facing the industry.

Located on the shores of Lake Kariba, Caribbea Bay Resort is one of the largest hotels in Kariba, offering stunning views and a range of water sports.

The resort features 83 rooms, six of which are suites, and offers tours to the nearby Kariba Dam, a popular attraction that showcases the history and traditions of the local Tonga people.

While African Sun claims that the sale is part of its strategy to downscale, many are speculating that economic reasons may be the driving force behind the decision.

“It could be economic reasons,” said an analyst, adding that the company’s recent asset sales suggest a need for financial restructuring.

The sale of Caribbea Bay Resort will have significant implications for the hospitality industry in Zimbabwe.

As African Sun continues to divest its non-core assets, the question remains: what’s next for the company? One thing is certain, however the hospitality landscape in Zimbabwe is undergoing significant changes.