‘The 140 Room Beitbridge Express Hotel Closes Down Following Heavy Losses’

The US$32 million Beitbridge Express Hotel with 140-rooms has shut down.

The hotel closed shop on January 31 after suffering heavy losses amounting to US$507 944 in the past two years.

Below is the full statement issued on Wednesday (today) :

The Board of Directors of Africa Sun Limited wish to announce that, the group agreed with Dawn Properties Limited (the Hotel owner) to mutually terminate the lease agreement for the Beitbridge Express Hotel and discontinue operations thereat.

The termination and discontinuation of operations is with effect from 31 January 2016.

The rationale for the termination was a result of the prolonged loss making by the Hotel which was eroding the Group’s equity.

Over the last three (3) years, the Board and Management have implemented broad strategies and initiatives in pursuit of mitigating the Hotel’s financial losses.

The financial losses continued despite various initiatives implemented, such as the Board was left with no option, but to take the considered view that disinvesting was the most prudent option.

The Hotel reported losses amounting to US$217 910 for the year ending 31 December 2015,  and the accumulated losses for the past two years amount to US$507 944.

As at 31 December 2015, the net current account liabilities position of the Hotel was US$194 607.

The full performance of the Hotel will be disclosed in the Groups financial results for the 15 months ending 31 December 2015, which will be published on or before 31 March 2016.source-byo24.

photo-Beitbridge Express Hotel

Leave a Comment