Thupeyo Muleya Beitbridge Bureau
The African Sun Limited board of directors has resolved to shut down operations at the loss making Beitbridge Express Hotel with effect from Sunday this week.
It is understood that the 102 room hotel has been incurring losses over the past three years forcing the company to close shop in the border town.
The organisation has a staff complement of 40 people and has been leasing the building from Dawn Properties Limited since 1998.
The company’s secretary, Mr Venon Musimbe said in a statement that they had reached a mutual agreement with Dawn Properties to terminate the lease (agreement) and discontinue operations.
“Over the past three years the Board and Management tried to implement broad strategies and initiatives in pursuit of mitigating the hotel’s finacial losses.
“The financial losses continued despite the various initiatives implemented, as such the board was left with no option but to take the considered view that disinvesting was the most prudent option” he said.
Mr Musimbe added that Beitbridge Express Hotel recorded losses amounting to $217 910 for the year ending 31 December 2015.
He said the hotel had an accumulated loss of $507 910 for the past two years.
The hotel is one of the 14 accommodation facilities in the border town.