The Capital Hotels and Apartments has been confirmed as the business rescue practitioner’s preferred bidder for the iconic Fairmont Zimbali Resort. The deal is subject to conditions, including Competition Commission approval.

The Kuwait-based owners of Zimbali, IFA Hotels and Resorts – which bought a 50% stake in the resort in 2003 – placed the hotel in business rescue in September last year.

GM of the hotel, Wayne Krambeck, said at the time that the extraordinary circumstances of a prolonged lockdown – with limited support from government – had eroded Zimbali’s revenue base.

“We were left with no choice but to apply for business rescue,” he said.

MD of The Capital Hotels and Apartments, Marc Wachsberger, said funding for the deal was secured based on the hotel group’s track record of being “a stable yet agile business” that has proven to shareholders and investors that it has a solid track record of taking advantage of investment opportunities, and achieving outstanding returns with them.

“The Capital Hotels and Apartments has built its portfolio of hotels by investing in the market at times when others would not, by identifying suitable distressed properties to add depth and value to our mix of business and leisure offerings,” he said.

Doors of the renamed The Capital Zimbali are likely to open in September. One of The Capital’s key business objectives was to retain the hotel’s current staff complement, as far as possible, added Wachsberger.

The 18-acre property, located in the heart of the exclusive Zimbali Coastal Resort eco-estate, includes 150 rooms and suites, conferencing for 750 delegates, and several restaurants, in addition to its lush outdoor leisure offerings.

Once the deal goes through, The Capital Hotels and Apartments will invest R30 million (€1.7m) in an extensive renovation and refurbishment project of the five-star hotel, including transforming suites into the flexible apartment-style accommodation that has become synonymous with the group.