Munyeza said the Holiday Inn Group in the world had set the Month of March for the total complettion of the refurbishment programme but that cash-strapped Zimbabwe had asked to be given more time because "of the financial situation facing the hotel chain".
"We are currently refurbishing the Holiday Inn Harare, Holiday Inn Bulawayo, and the Beitbridge Holiday Inn," Munyeza said.
"We had been given until March, this year, to finish the project but we asked for more time from the international franchise owners."
He said the project would be completed with funds already raised in Zimbabwe.
Holiday Inn Accra Ghana has dished out $1,11 million in debentures to African Sun Limited.
The Group says the net current liabilities position increased from $1,39 million in September 2010 to $4,43 million at the end of the period under review owing mainly due to the "depressed performance at the two South African hotels and capital expenditure'.
"This position is, however, expected to improve as we enter in to our peak season and as the rental concessions in South Africa begin to be realised," Munyeza said.
African Sun Limited has asked for a long-term loan and made its first draw down of $3,4 million from the approved $10 million long-term facility with the Afrexim Bank Limited.
The terms of the long-term loan are – that tenure be five years with an option to extend for an additional two years at a cost of 7 percent LIBOR and that the loan would be applied towards the refurbishment of the five main Zimbabwe hotels including the Holiday Inn chain.
African Sun Limited is listed on the Zimbabwe Stock Exchange (ZSE).
It, however, has made flirtations with the Johannesburg Securities Exchange (JSE).
Last year the hotel entity chalked up a profit of more than $27,7 million from Zimbabwe operations alone.
Post published in: Business