Peter Saungweme

The African Sun hotel group is set to move out of the Kingdom Hotel in Victoria Falls next month after failing to agree with the landlord over new lease tenure.

Africa Sun Chief Executive Officer, Peter Saungweme announced the development in a statement that he issued to the group’s stakeholders last week.

“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 shall be closing for business with effect from 5 January 2023,” read part of Saungweme’s statement.

Saungweme explained that the hotel group failed to agree with the hotel property owner, Makasa Sun over lease tenure. African Sun successfully tendered to lease the hotel in 2021 but negotiations over lease terms continued into 2022.

“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 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. 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.”

African Sun has been leasing the 294-room hotel since 1997. Part of the tender requirement included roping in an international hotel brand and rebranding the hotel. The hotel group intended to bring in the British multinational hospitality company, the Intercontinental Hotels Group (IHG) and invest US$6.5 million in rebranding the hotel over 10 years.

First Capital Bank owns 50 percent of Makasa Sun while the Barclays Pension Fund owns the remainder.

The African Sun board of directors has effected changes to its executive which will see current Chief Executive Officer, Edwin Shangwa being replaced by Peter Saungweme at the end of December.

This was announced by the board in a media statement. The changes will also see the company’s incumbent Finance Director, Believemore Dirorimwe being replaced by Ndangariro Mutizwa at the end of this month.

“Saungweme assumes the role of CEO taking over from Edwin Timothy Shangwa, the current Managing Director who is stepping down from his role after diligently serving the company for 42 years in various positions. Edwin will leave his current role on 31 December 2021. To facilitate a smooth transition, Edwin would, however, be retained in a consulting capacity until 31 May 2022,” said the board.

Saungweme is a chartered accountant by profession and is currently the CEO of the Johannesburg Stock Exchange-listed Arden Capital Limited.

“In line with Ndangariro Mutizwa’s appointment as the CFO, Believemore Dirorimwe, who has served the company in various roles for 13 years including 6 years as the Finance Director, would be stepping down from his role on 30 November 2021,” read part of the board’s statement.

Dirorimwe’s replacement is also a chartered accountant who has worked for Dawn Properties, Masawara PLC and Mashonaland Holdings.

The leadership shakeup at African Sun follows the company’s acquisition of Dawn Properties during the course of the year, effectively reversing the earlier unbundling of its property portfolio. The unbundling was driven by the need to unlock value in its properties.

African Sun is a major player in Zimbabwe’s business events and business tourism sectors. It owns the Kingdom At Victoria Falls and the Elephant Hills Resort and Conference Centre, which are located in the resort city of Victoria Falls. The two facilities host many local and international conferences.

The group also owns hotels in Harare, Bulawayo, Mutare, Masvingo and Nyanga among other places.

African Sun moves out of Kingdom Hotel property

African Sun in change of guard