THE country’s largest hotel group, African Sun Limited (ASL), has announced the closure of the 294 roomed Kingdom Hotel in Victoria Falls effective 5 January 2023.
In July, the hotel group announced its pending exit citing
the lease tenure with property owner- First Capital Bank (FCB).
According to the July notice, the hotel group said it had
hoped to secure at least a 10 year lease
but FCB was offering two years.
The hotel has been under the African Sun stable since 1966
and was leased from Makasa Sun (Private) Limited.
In a letter dated 24 November, African Sun chief executive
officer, Mr Peter Saungweme said:
“Further to the formal announcement, which African Sun Limited (African Sun)
released to the market on 4 July 2022, we would like to inform you that the
Kingdom at Victoria Falls Hotel (“the Hotel”) shall be closing for business
with effect from 5 January 2023,” he said.
The letter, which is addressed to the Travel Trade Partner,
adds: “we would like to thank you for your past business and support over the
years and look forward to continuing working with you at our other ten hotels,
which include the Victoria Falls Hotel and Elephant Hills Resort and Conference
Centre, which are also situated in the City of Victoria Falls.”
In the July notice, Africa Sun said the exit is coming
after it had been successful in the 2021 tender for the hotel’s lease.
“However, despite this success, a mutually agreeable lease
tenure could not be reached, with the landlord only willing to offer a lease of
two years against the group’s ask of a tenure of at least ten years in its
tender.
“The ten-year lease tenure was and is still considered as
being the minimum the company would need to recoup and realise a return from
its envisaged investment in the hotel,” reads the notice.
“The decision to exit the hotel has not been an easy
one for the board, but was necessary and unavoidable to protect shareholder
value in the circumstances.” Chronicle
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