NEW Meikles Hotel owners, ASB Hospitality (Zimbabwe) will take effective control of the entity on 1 March following the recent fulfilment of the last stages of the purchase agreement.
Speaking on the latest development, Meikles Limited’s company secretary, Thabani Mpofu said the disposal of the hotel’s immovable property, hotel and business related assets, has been successfully completed.
“The directors wish to advise shareholders that the requisite terms for regularising the control of the Meikles Hotel to the buyer as per the sale and purchase agreements have been met. The Buyer will take effective control of the Meikles Hotel on 1 March 2020,” he said.
Meikles Hotel was sold to ASB Hospitality (Zimbabwe) for US$20 million.
The move emanated from the Meikles Hotel directors’ conclusion that the hotel had no capacity to mobilise the US$30 million required for the refurbishment to turn it into a five-star property.
The amount was required for the substantial modernisation of guest facilities as well as electro-mechanical and plumbing to restore the hotel to international standards.
Details of the disposal transaction indicate that the proposed US$20 million was broken down into US$3,8 million for the Meikles Hotel business and assets and US$16,2 million for the Meikles Hotel building.
ASB Hospitality, as part of the terms, shall take over all hotel employees together with the business and assets in terms of the Labour Act.
ASB Hospitality shall have use of the name Meikles Hotel, its associated logos as well as intellectual property relating to the hotel business.
This will include all the hotel business’ patents, inventions, restaurant naming rights, know-how, trade secrets and confidentiality agreements including trademarks, service marks, corporate names, copyrights and applications for registration of any of the foregoin. – Newzim