African Sun terminates management deal with Legacy

06 May, 2019 - 14:05 0 Views
African Sun terminates management deal with Legacy

eBusiness Weekly

HARARE – Hotel and leisure chain, African Sun  said on Friday it has terminated a deal it entered into over three and a  half years ago with South African group, Legacy Hospitality Management  Services Limited (Legacy) to manage five of its local hotels.


Signed amid pomp and fanfare and touted as the best move towards  improving profitability, growth and visibility of the hotels in  September 2015, the deal entailed a $60 million facelift of the  properties.

The five hotels which were put under Legacy management and were then  re-branded include Elephant Hills in Victoria Falls, Monomotapa in the  capital, Troutbeck Resort in Nyanga, Hwange  Safari Lodge and the Kingdom at Victoria Falls Hotel.

While thanking Legacy for “its association over this period,” African  Sun said management of the hotels had reverted back to its owner and a  handover/takeover process was underway.

“We would like to assure our stakeholders that this termination will  not adversely affect the delivery of services at the relevant hotels,” said African Sun company secretary Venon Musimbe.

“If anything, we remain firmly focused on providing excellent service  to our customers and growing value for all our shareholders.”

The relationship between the two companies was not always rosy during  the subsistence of the partnership amid reports earlier this year that  the firms had gone for arbitration, over an undisclosed matter.

A general recovery in Zimbabwe’s tourism sector performance in the past  few years, has spurred the performance of the once struggling hotel  group, which in the last reporting period ended December, 2018 saw its  net profit more than double to $10.14 million, declaring a second  interim dividend of 0.3862 US cents per share. –  New Ziana



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