Well-timed boost for hos­pi­tal­ity

Weekend Argus (Saturday Edition) - - PROPERTY -

AL­THOUGH the short-term out­look for the hos­pi­tal­ity in­dus­try is chal­leng­ing, the World Cup will pro­vide a much-needed boost to ho­tel prof­its, and the medium-to long-ter m out­look for the in­dus­try re­mains pos­i­tive.

So says Ger­ald Nel­son, the chief ex­ec­u­tive of Hos­pi­tal­ity Prop­erty Fund, which in­vests ex­clu­sively in ho­tel and leisure prop­er­ties and has in­ter­ests in 23 ho­tel and re­sort prop­er­ties in South Africa.

The fund last year is­sued a trad­ing state­ment that its to­tal dis­tri­bu­tion and linked unit for its next dis­tri­bu­tion pe­riod, end­ing De­cem­ber 31, 2009, was likely to be be­tween 30 per­cent and 40 per­cent lower than that of the pre­vi­ous cor­re­spond­ing pe­riod.

“ Hos­pi­tal­ity Fund’s for­ward book­ings sug­gests that the cor­po­rate and con­fer­enc­ing mar­ket seg­ments should pick up from Fe­bru­ary, but for­eign leisure travel is likely to re­main de­pressed in the early part of the new year and Gov­ern­ment con­fer­enc­ing book­ings so far have re­mained sub­stan­tially be­low his­toric num­bers,” says Nel­son.

“In this en­vi­ron­ment, the World Cup is su­perbly timed and placed to re­vive South Africa’s ho­tel prof­its,” he says.

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