Tsogo Sun to invest R680m in hotel

AN INVESTMENT of R680 million is to be made in the construction of a new 500 bedroom hotel complex in the Cape Town city centre for listed gaming and leisure group Tsogo Sun.

Marcel von Aulock, the chief executive of Tsogo Sun, yesterday said that the group had reached an agreement with the owners of the site of the recently demolished Tulip hotel for the construction of the new hotel complex at the corner of Buitengracht and Strand streets. The hotel site currently includes a heritage façade, which will be retained.

Construction is expected to commence in May and the complex is scheduled to be completed by September 2017 in time for peak summer tourist season.

Tim Harris, the chief executive of Wesgro, the official tourism, trade and investment promotion agency for Cape Town and the Western Cape, yesterday welcomed the investment in the new hotel complex.

“Our city is re-inventing itself. This investment is a huge confidence booster for the central city and for tourism investment in the region. In addition, because the two hotels are targeting the twoand three-star ‘value tourism’ market they will help to meet some of the excess demand for rooms in this price range and broaden the hotel product offering in the city,” he said.

Von Aulock said the investment in the complex represented Tsogo Sun’s continued commitment to the area and would boost the total number of Tsogo Sun rooms in the Cape Town city centre to more than 2 000.

“We believe the continued development and rejuvenation of Cape Town’s city centre will lead to growing demand for hotel accommodation.

“We already operate three full service hotels – The Cullinan, Southern Sun Waterfront and Southern Sun Cape Sun – as well as the recently refurbished SunSquare Cape Town in Gardens. The addition of an exciting new product aimed at the limited service market will allow us to provide the full spectrum of products to suit all budgets for both business and leisure travellers,” he said.

Von Aulock said the new hotel would consist of two products in one complex, a 200-bedroom latest design SunSquare hotel and a 300-bedroom new generation StayEasy hotel. The complex would also include banqueting and conference facilities, Tsogo Sun’s dining offering Vigour & Verve, retail space and about 300 underground parking bays.

The group’s SunSquare and StayEasy hotel options each had their own character and appeal but the overriding offering in both was affordable, high quality accommodation.

“We’re delighted to have this opportunity to increase our presence in one of the most vibrant cities on the continent,” he said.

Tsogo Sun’s portfolio includes more than 90 hotels and 14 casino throughout South Africa, Africa, the Seychelles and Abu Dhabi.

Its shares shed 0.35 percent to R28.39 yesterday.