Beitbridge Express Hotel has been closed following African Sun Group board of directors’ decision to shut the loss making business unit.
The hospitality group’s board of directors took a bold decision to discontinue operations of the hotel citing the unhealthy balance sheet and cumulative losses recorded by the unit.
In a statement, the firm said the termination and discontinuation of operations is with effect from the 31st of January 2016.
According to the hospitality group, the financial losses continued despite various initiatives implemented.
An economist, Mr Brains Muchemwa, said the decision taken by the board to discontinue operations is commendable given the fact that the business unit was bleeding the entire group.
Other market analysts said the dismal performance by the unit can be attributed to the stiff competition by other players with operations in the border town.
Beitbridge Express Hotel reported loss amounting to US$217 000 for the year ending 31st December 2015 and the accumulated losses for the past two years totaling US$507 000.