Victoria Falls Stock Exchange-listed hospitality group African Sun Limited (ASL) strengthened its financial position during the third quarter, reporting an 87% increase in cash and cash equivalents to US$19,9 million.
This growth was fuelled by proceeds from the sale of non-core assets and robust operational cash generation.
ASL has been executing a strategy to streamline its portfolio, divesting from several properties over the past year.
These disposals included the sale of Great Zimbabwe Hotel alongside Laclede Investments (Private) Limited for US$4,2 million. In a separate transaction, the group also sold Monomotapa Hotel and an adjacent car park for US$18 million.
The divestment programme continues, with Caribbea Bay Resort in Kariba now on the market. The company confirmed it had begun engaging with an interested party who has submitted a formal offer for the property.
“The group closed the quarter with US$19,9 million in cash and cash equivalents, an 87% increase year-on-year, while maintaining a debt-free position,” ASL said in a trading update for the third quarter ended September 30, 2025.
“This growth was driven by proceeds from non-core asset disposals and operational cash generation, as the group gears up for the much-anticipated 2026 hotel refurbishment projects. These will significantly enhance our hotel product quality, guest experience, and yields across the portfolio.”
As of the end of June, ASL had already committed US$22,89 million to these future projects.
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The group expects the final quarter’s performance to be driven by domestic demand and festive season activity. It also projects international arrivals to remain resilient, aligning with World Tourism Barometer forecasts.
“Continued economic stability is expected to support forward bookings and competitive pricing, bolstering ADR (average daily rate),” the group said.
However, it also noted a potential headwind.
“While tight local currency liquidity may help contain costs, it could also constrain disposable income and dampen local demand, potentially weighing on the forecasted growth for the period ahead,” the trading update said.
For the third quarter, revenue was US$14,2 million, remaining in line with the same period last year. Year-to-date revenue reached US$37,2 million, a 2% increase from the prior year, attributed to a firmer ADR.
The group did report a decline in room night sales.
The foreign market’s contribution rose from 29% to 37% year to date, which the company said signals “continued recovery and the growing attractiveness of Zimbabwe as a bucket list destination for international tourists”.
While the domestic market remained dominant at 63%, the proportion of business conducted in US dollars increased.
“US dollar-based business increased to 80% from 76%, reflecting reduced local currency liquidity and exchange rate stability,” the group stated.
