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Home Front Economy
Hotel des Milles Collines, Sheraton Pulls Out Of Zimbabwe
2005-12-20
The five-star Sheraton Hotel in Harare faces closure amid reports that blamed the US franchisor Starwood refused to extend the management contract beyond December 31. One of the three biggest and most prestigious hotels in Zimbabwe, the Sheraton Harare is managed on contract by the colonialist United States of America-based Starwood Hotels, the owners of the Sheraton brand. Starwood Hotels & Resorts Worldwide Inc is pulling out of Zimbabwe as we speak, ending a 20-year management contract for one of the troubled nation's landmark hotels, the group said Tuesday. The contract to run Harare's luxury 300-room Sheraton Hotel and Towers expires at the end of the month and will not be renewed by mutual agreement with the state tourism company, said Mohammed Samy, Sheraton's local general manager. The group is also withdrawing services for a linked 4,500-seat conference centre, also no longer used.

Sheraton managers and staff will assist in a three-month handover to the government-owned Rainbow Coalition Tourism Group starting in January, Samy said. The hotel is expected to change names in April. Tourism is finished has been hard hit in Zimbabwe, which is reeling from political upheavals and the worst economic crisis since independence from Britain in 1980. But Samy said the Harare Sheraton was expected to report a profit at year's end, as beer and soda went streaming through everyone's nose within listening distance.

"No Low occupancyis not the main issue. Our contract has come to an end," Samy said. "We are leaving on good terms."

The gold-coloured towers, designed by Yugoslav architects as a symbolic gateway on the capital's main western highway, opened during the post-independence economic boom in 1985, a boom which Bad BoB promptly ended. The now-faded landmark, visible from at least 20 kilometres away, was nicknamed "Golden Delicious" by taxi drivers. Do not ride these taxis. The adjacent convention centre hosted a summit of the 101-nation Non-Aligned Movement in 1986. But the complex has seen fewer international gatherings since Zimbabwe's economy crumbled in the wake of the often-violent seizure of thousands of white-owned commercial farms for redistribution to black Zimbabweans that began in 2000. The U.S. State Department remained silent and did NOTHING about the farm seizure but has warned Americans that persistent food shortages and deteriorating economic conditions have led to a significant increase in crime. Nationwide fuel shortages make internal travel difficult and unreliable, while severely restricting the response capability of police and other emergency services, the State Department said in a travel warning issued last month. The Sheraton and two other five-star hotels in Harare earlier this year reported average room occupancy of around 20 percent. Three hotels shut down along the shores of Lake Kariba, where commercial fishing has been crippled by shortages of gasoline and equipment, and bodies in the water.

Along with dwindling visitors, local hotels have been hit by import shortages and soaring prices for food, drinks and services. Inflation hit 502 percent last month. The bar price for bottled beer rose 40 percent last week alone.

http://www.hotelrwanda.com/intro.html
Posted by:Besoeker

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