[2008-09-09]  African Sun Limited Set to Open New Hotel
AFRICAN Sun Limited, the country's leading hotel and leisure group is set to construct a 200-roomed hotel in Bulawayo, as the former Zimsun Leisure group intensifies its local expansion programme.

Shingi Munyeza, the group's chief executive officer, told The Financial Gazette this week that the hotel would either be a three-star or four-star facility.


"We have plans to construct a new hotel in Bulawayo but we haven't finalised on the issue yet. We are still at the drawing table, but we would like it to be finalised before the end of this year, " said Munyeza.

Munyeza, who is also the chairman of the Zimbabwe Tourism Authority, said the project was meant to cater for the anticipated growth in Bulawayo, the country's second largest city, in terms of commerce and industry.

"We are building capacity wherever we are. A massive growth in terms of commerce and industry is expected in Bulawayo; as a result we are trying to position ourselves," he said.

The construction of the hotel is expected to take less than two years.

African Sun said it will, in the next few weeks be updating the market about progress in Beitbridge, where it is undertaking construction of a hotel in partnership with the National Social Security Authority.

African Sun has a capacity of 2000 rooms in Zimbabwe. It operates Elephant Hills, Kingdom Hotel (Victoria Falls) and Crowne Plaza Monomotapa in Harare. It also runs Holiday Inn hotels in Mutare, Bulawayo, Harare and Masvingo. African Sun also operates resort lodges around the country.

The group is a controlling shareholder in Dawn Properties, an investment property holding company, which owns nine of the African Sun's hotels in Zimbabwe.

Meanwhile, Pearl Properties is hoping to expand its portfolio into the leisure market amid speculation that the property concern might leverage its position through an existing alliance between its parent company, Afre Corporation and the Rainbow Tourism Group (RTG).

Managing director Francis Nyambiri revealed at the presentation of the company's unaudited financial results for the half-year ended June 30 2008 that Pearl now wants to go into the development of hotels, an indication that the company might have cemented its relationship with RTG, rumoured as the management partner in the project.

"We want to venture into hotels. We have already acquired land for the hotel in one of the resort areas of Zimbabwe. As soon as the consultations are through, we will let know the public," he said.

Although Nyambiri could not shed more light on the new project, sources said the immediate plan was to develop a five star hotel in the resort town of Victoria Falls for RTG, close to A' Zambezi Hotel, another RTG property.

This would mean that RTG would no longer get itself involved in the construction of hotels, a task that would be left to Pearl Properties.

Dunmore Kundishora, the company's chairman said while there was a need to complete the developments currently underway, Pearl has seen it viable to add new developments to its current portfolio.

"Your board is aware of the need to continue regenerating your company by adding new developments to its current portfolio. Whilst there is a strong focus on completing the developments currently underway and for which the IPO (Initial Public Offer) funds were raised, your company continues to prospect for new opportunities especially seeking entry into asset classes, which are currently not in its portfolio," he said.

As a result, Pearl Properties would be the second property company in Zimbabwe to demonstrate interest in the leisure industry after Dawn Properties Limited, which owns Troutbeck Inn, Elephant Hills, Caribbea Bay, Monomotapa Hotel, Great Zimbabwe Hotel, Hwange Safari Lodge and Lakeview Inn.

Pearl Properties also operates commercial and retail properties in the major towns of Zimbabwe.

These include office parks, high-rise buildings in the central business districts, retail, industrial premises and warehouses.

During the period under review, the company yielded a rental income of $171 trillion, a 3 076 775 percent increase from $6 billion the same period last year.

Pearl's property investments revaluation increased to $15 quintillion ($1,5 billion revalued), compared to $165 trillion ($16 500 revalued) in December 2007.




Source: Copyright © 2008 Financial Gazette.