Last week, the Fairmont Zimbali Hotel, located on KZN’s North Coast entered business rescue, due to mounting losses and a slow-down in demand for accommodation at the upmarket hotel establishment.
The national lockdown and drop in demand for hotel accommodation has led to severe financial difficulties for numerous hotels in the country. Border closures and the ban on international travel have negatively impacted hotels which rely on overseas visitors.
The Zimbali hotel offers 154 luxury rooms with magnificent sea-views of the Indian Ocean. The hotel’s general manager said that the hotel would not be able to continue trading in the current economic climate, where demand had reduced significantly.
The property, owned by Kuwaiti company, IFA Fair-Zim, entered business rescue on 16 September. In a media interview, business rescue practitioner Pierre Berrange said that a disposal process had commenced, and this process would continue.
Zimbali consists of both hotel sections and private residential sections. The sections owned by the IFA Fair-Zim company, which trade as the Zimbali hotel would be up for sale.