The sale of the iconic Meikles hotel to ASB Hospitality Zimbabwe, a company of Albwardy Investment LLC of Dubai has been completed with the United Arab Emirates-headquartered company set to assume control of the hotel from the first of March.
The hotel previously owned by the Moxon family through Zimbabwe Stock Exchange-listed entity- Meikles Limited, was last year disposed at a value of US$ 20 million.
“The Directors wish to advise shareholders that the requisite terms for regularizing the control of the Meikles Hotel to the Buyer per the Sale and Purchase Agreements have been met. The Buyer will take effective control of the Meikles Hotel on 1 March 2020,” Meikles Limited company secretary Thabani Mpofu said in a statement to stakeholders.
Details of the US$ 20 million transaction reveal that the deal will be paid in two phases, first the disposal of the hotel business and related hotel assets as a going concern for a total consideration of US$3, 8 million and the disposal of the immovable property that is the Meikles Hotel building in Harare for a total consideration of US$16, 2 million.
The new owners shall have use of the name, Meikles Hotel , its associated logos as well as intellectual property relating to the hotel business for a period of five years which can be renewed.