EXILED former Tourism minister Walter Mzembi (pictured) says the sale and rebranding of Meikles Hotel, one of the country’s iconic hospitality establishments, marked the death of globally competitive home-grown tourism brands.
BERNARD MPOFU
This week, the Meikles Hotel was officially rebranded to “Hyatt Regency Harare The Meikles” as the last flagship business to carry the full name of the Meikles family completed its makeover.
President Emmerson Mnangagwa and other senior government officials like Reserve Bank of Zimbabwe governor John Mushayavanhu officiated at the completion the refurbishment and rebranding of the hotel.
“I don’t know why I feel this sad nostalgic loss of a home brand,” Mzembi said on his official X handle.
“Meikles was a globally acknowledged hotel brand holding its pride of place amongst the best in the world, its departure for me is a funeral of home excellence. Is this loss by those who know branding better, shared?”
With over 100 years of existence, Meikles, which hosted international celebrities like the late great “King of Pop” Michael Jackson as well as global political leaders, was one of the oldest and probably the most well-known five-star hotel in Zimbabwe.
The company’s hotel division has evolved over time but was, at various points, made up of the Cape Grace Hotel in South Africa, and in Zimbabwe, the Meikles Hotel, and the Victoria Falls Hotel.
Between 2014 and 2018, the Meikles Hotel incurred losses of nearly US$15 million, prompting its former owners to consider disposing of it. By 2019, Meikles was constrained on capital and would have needed to invest another US$30 million to renovate the hotel.
In its 2015 annual report, the company expressed concern over the introduction of a new value-added tax on tourism players.
“More than 75% of our hotel guests are foreign visitors, and the introduction in January 2015 of value-added tax (VAT) at the standard rate of 15% on accommodation charged to foreigners further hindered revenue growth,” read the annual report in part.
“The introduction of VAT could not immediately be passed onto guests in full given the weak demand. The introduction of VAT has effectively made Zimbabwe an expensive destination, and the South African source market, given the depreciating rand, was significantly affected.
“This has impacted negatively on occupancy growth in the last quarter of the financial year.”
The sale of the Meikles Hotel for US$20 million to Albwardy of the United Arab Emirates was announced in 2019 and concluded in 2020.
Market watchers say given the losses that the Meikles had been incurring, this was a good deal for the local company, considering that the proceeds were allocated to better opportunities such as its agribusiness ventures and the five-star Victoria Falls Hotel.
