The Fairmont Zimbali Hotel in KZN will be sold off as a whole, the business rescue practitioner for IFA Fair Zim Hotel & Resort Proprietary Limited has confirmed.
On Thursday, September 17, IFA Fair Zim Hotel & Resort said it had entered business rescue on Wednesday, September 16, citing the COVID-19 crisis’s disruption of travel and tourism.
“The consequent stagnation in global economic activity together with the South African government-imposed National State of Disaster has impacted negatively on our business,” GM Wayne Krambeck said in a statement. “The losses that will be incurred in a gradual return to normality with ongoing uncertainty and the possible threat of further restrictions is just not commercially viable. We have been left with no alternative but to apply for business rescue.”
The appointed business rescue practitioner, Pierre Berrange, told Tourism Update that a disposal process had commenced prior to business rescue and that this process would continue. The hotel sections that belong to the company will be sold, but not those sections or units owned by third parties or individuals.
None of the other Fairmont properties are affected by the business rescue. IFA Fair-Zim is a wholly owned Kuwaiti company, which owns other hotels, including other, but not all, Fairmont hotels.