HomeBusiness DigestElephant Hills up for grabs?

Elephant Hills up for grabs?

Staff Writer

ELEPHANT Hills, one of the country’s most popular and prestigious hotels, is up for grabs as the owners Dawn Properties are struggling to remain viable, sources said this week. <

The businessdigest understands that the owners of the Elephant Hills, situated in Victoria Falls, have offered to dispose of the hotel to prominent players in the property market.

Sources in the property industry say the stock market listed Dawn Properties put a US$2,5 million price tag on the hotel – a price which analyst feel “is a bit high”.

Elephant Hills was valued at $9 billion (US$1,7 million at the foreign currency auction) during a prelisting review.

The hotel was recently renovated after being gutted by fire two years ago.

The sources say the property company is already scouting for potential buyers in the industry.

It is also reliably understood that certain companies and individuals had been offered the hotel.

Elephant Hills is one of the former Zimsun hotels that were transferred to Dawn Properties after the leisure group decided to unbundle its property portfolio in order to unlock value.

Dawn Properties leased the hotel to Zimsun Leisure on a turnover basis.

Zimsun currently holds 19% of Dawn Properties.

The chief executive officer of Dawn Properties Mike Manyika however this week denied that the hotel had been earmarked to be off-loaded.

“We have no intention of sell-ing Elephant Hills. We are not selling anything,” Manyika said. “It’s not true that we are selling the hotel.

“Our company is not sinking. We don’t have any borrowings that would make us crash,” he added.

However sources say the property company was currently struggling and could have been affected by the current economic downturn and the quiet property market.

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