Mbabane – Reverend Senzo Hlatshwayo has reportedly signed as surety in a lease agreement for the Castle Hotel in Mbabane, leased to foreign nationals recently arrested for alleged illegal gambling, according to the Eswatini Observer.
The lease, signed on February 3, 2026, by Lyu Tou, one of the arrested tenants, binds Hlatshwayo as co-principal debtor and surety. Under the agreement, the tenant was required to pay monthly rent of E180 000, exclusive of VAT, either quarterly in advance or before the seventh day of each month. The lease was set to run from February 10, 2026, to March 10, 2031, with an option to renew for five additional years if written notice is given six months before the expiry date.
Documents seen by this publication show Hlatshwayo undertook responsibility for any unpaid obligations by the tenant. The deed of suretyship reads: “I, Rev Senzo Hlatshwayo, the undersigned, do hereby bind myself jointly and severally as surety and co-principal debtor in solidum to and in favour of Tou Lyu for the payment on demand of all sums of money which may be owed by the lessee.”
The lease stipulates that the Castle Hotel is to be used solely for hotel operations, including accommodation, hospitality services, and customary ancillary activities, with any other use requiring prior written consent from the landlord. It also includes an annual rental escalation, beginning with a 7% increase from March 2027 to March 2028, and a 10% increase on the fourth anniversary from March 2030 to March 2031.
A security deposit equivalent to one month’s rent, E180 000, was required upon signing, to be held as security for the tenant’s performance under the lease. The agreement further details that the premises must be returned in the same condition at the end of the lease, with a joint inspection conducted at least seven days before vacating. Any damages identified during the inspection are to be repaired at the tenant’s cost.
Efforts to obtain comment from the Ministry of Tourism reportedly found officials unaware of Hlatshwayo’s involvement in the lease.
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