TransNamib takes over Swakop hotel
… aims to sell facility at later stage
SWAKOPMUND – After spending close to N$103 million to acquire the remaining 50% shares of the four-star Swakopmund Hotel and Entertainment Centre, TransNamib CEO Johnny Smith says the rail parastatal will consider selling the property in future.
The facility, which is worth N$350 million, is now a fully Namibian-owned entity after TransNamib acquired the remaining 50% shares from South African outfit Stocks & Stocks Leisure. A High Court judge last year ordered TransNamib to sell its shareholding to Stocks & Stocks Leisure Namibia for N$5 million.
However, Cabinet went against the court’s decision by helping TransNamib acquire the remaining shares instead.
Smith said on Friday that the
deal was now finalised, and they have signed a new management agreement with Legacy Hospitality to manage the hotel for the next 10 years.
According to Smith, this agreement allows the hotel management to bring innovation as the hotel is repositioning itself as the leading accommodation establishment at the Namibian coast.
“I am pleased to further announce that we will invest in infrastructural improvements of the hotel that will also include the refurbishment of its 90 rooms,” he said.
Asked whether TransNamib is now venturing into the hospitality industry, Smith indicated that they will still focus on their core businesses, but that the desire was to ensure that the hotel becomes fully Namibian-owned.
“Our intention is to sell the
hotel at a later stage,” Smith said.
The chairperson of the TransNamib board, Lionel Matthews, said it was important for the shareholders to preserve jobs and for the hotel to remain sustainable.
“We looked at how we can make it work, and that is why we are here today. The Cabinet resolution is that TransNamib exits from the hotel within the next five years because it is not their core business. However, the reason this deal was made is because the hotel is part of TransNamib and was part of the old railway station,” he added.
He also indicated that they are optimistic that they will create a sustainable business to create jobs while focusing on getting their clients back.
The hotel is currently valued at N$350 million, but has liabilities to the tune of N$111 million and an asset base totalling N$65 million.