[2008-09-19]  African Sun plans US$100m project


Group keen to establish hotels throughout continent
PAN-AFRICAN hotel group, African Sun Limited (ASL), is planning to spend at least US$100mn on leases within the next five years. The funds will be raised at specific project levels.Shingi Munyeza, the group’s chief executive officer, said since the year 2000, there has been no growth in the country’s tourism industry in terms of room capacity and it was time the group increased room capacity both locally and regionally to take advantage of the expected growth in business “We intend to have spent in the next five years US$100mn on leases. This will be raised at a specific project level,” said Munyeza.He said he was optimistic about the country’s economy, which is currently characterized by the highest inflation rate in the world of over 11mn percent coupled with an unstable political environment. He said the group was looking beyond the current economic and political tension in the country that had caused the near collapse of the once thriving sector.“The country’s situation might appear appalling at the moment but the time for restoration is sooner and the tourism sector will enjoy the benefits,” he added.Munyeza said it was the group’s aim to have a hotel in every country on the continent.“We will have a hotel in every country in Africa,” he said. The group intended to add 1 000 rooms locally in the next three years and 4 000 rooms outside the country by the year 2012.In its half year unaudited results for the period ended 31 March, the Zimbabwe Stock Exchange listed group reported an increase in room occupancy from 38 percent in the prior period to 47 percent during the period under review. However, due to the political tension associated with the election period, growth in foreign arrivals into the group’s Zimbabwe hotels dropped by a staggering margin to 1 percent during the half year compared to 32 percent in the prior period


Source: HERALD