Hospitality and tourism’s relevance to African markets

The hospitality and tourism is an important sector for many developing countries, since it is one of the main foreign exchange earners and key exports component. In 2016, foreign visitors to Africa reached 58 million with a spending of USD 40,7 billion approximately 36,3%, and projected to reach 42,9bn by end of 2017. These statistics by Jumia Travel’s Hospitality Report Africa, reflect the sector’s extensive significance both in terms of social and economic growth.


The Grey Boutique Hotel to launch in the heart of Cape Town

In De Waterkant, Green Point, The Grey Boutique Hotel is set to launch in December 2016, with 13 double rooms with en-suite bathrooms, free high speed Wi-Fi and a mini bar. Two of the rooms incorporate a private balcony overlooking the majestic Table Mountain. 

Together with the launch of the boutique hotel, a trendy collection of hospitality and leisure spaces now called ‘The Grey’, will be launched at the same time. The trend-epicentre destination hotel is home to Skybar, SHIO restaurant, The Piano Bar and KOS kiosk, together forming ‘The Grey Experience’, each with a unique purpose for tourists and local hangout spots.

The Grey Boutique Hotel incorporates décor elements of Moroccan influences with splashes of colour in the courtyards and imported décor materials that create a feeling of authenticity. The bright colours unfold in the intricate layout of the hotel and complement the grey hues of the building. 

Co-Owner and Managing Director of The Grey Boutique Hotel, Lisa Calligaro, manages and owns two renowned jewellery stores in South Africa, Giro Del Mondo, integrating women’s fashion, jewellery and home décor. With hotel management behind her name, Calligaro embarked on the ‘The Grey’ project in June 2016, when the renovations began under the guidance of her father and hotel developer Christian Peters, who is also co-owner together with Monika Brune, owner of leading PR agency in Germany, Blume PR.

Owner of Strandhotel Blankenese in Hamburg, Peters and Brune also own one of the largest Kitchen accessory companies in Germany, One Kitchenand a concept store in Hamburg, called 'The Box', which incorporates many stores under one roof. For Peters and Brune, The Grey Boutique Hotel means entering the South African market for the first time, while Calligaro is no stranger to it. 

Together they have created an urban destination point in Cape Town for those wanting to experience De Waterkant and the city centre in its truest form. When the renovation is complete they will have taken an old dusty building and transformed it into a definitive place incorporating the different lifestyle spaces that will not only attract locals but also young travellers.  A cool place for urban people.


SA Hospitality Industry faces the double-edged sword of online platforms

Online booking platforms offer the traditional, formal hospitality sectors multiple opportunities to market their inventory and secure bookings.  With today’s rising consumer preference to research, identify and transact for what they want online, preferably using their phones, most hotel chains, resorts and guesthouses recognize the value of being present and accessible on tech-driven sites such as,, Expedia and Hotwire which feature on the ‘best deals for consumers.


Hospitality green light mooted over Tsogo share deal

According to BusinessDay hospitality Property Fund (HPF)’s shareholders are likely tomorrow to vote in favour of a new capital structure and a share deal that would see it become the hotel arm of gaming and leisure group Tsogo Sun.

Hospitality’s A and B share structure, which was developed to offer different risks and rewards to shareholders, has been controversial, with the holders of B shares losing out on income payouts.

Tsogo wants to inject 10 hotels valued at almost R1,8bn into Hospitality in exchange for more than 50% of Hospitality’s ordinary shares, on condition it adopts a single-share structure.

Shareholders will vote on the share structure and Tsogo deal on Friday, with results expected on Monday. Hospitality listed in 2006 and initially provided strong returns to investors. The fund benefited from a healthy tourism sector leading up to the 2010 Soccer World Cup, but then struggled to earn profits and consistently pay dividends to shareholders.

Investors who own A shares are paid dividends first — capped at the consumer price index or 5%, whichever is lower.

B shareholders receive the balance. With Hospitality earning little income in the past few years, the B shareholders’ distribution growth has fallen.

Hospitality’s recently appointed CEO, Vincent Joyner, said yesterday that he was confident shareholders would vote in favour of the new single-share structure.

"Having an A-B dual share structure has proven to be contentious. When HPF listed in 2006, the structure was designed to suit certain needs. However, things have changed in the Reit sector and it would be best for us to have a single share structure.”

"I f the share structure is changed to a single structure and we have the tie-up with Tsogo, Hospitality’s share price will re rate," says Mr Joyner.

Tsogo Sun said it would proceed with asset-injection only in exchange for shares if the A and B shareholders voted in favour of scrapping the dual-unit structure.

Mr Joyner said Hospitality owned 16 hotels and had an asset base worth about R5bn. Hospitality listed with 16 hotels worth R1,2bn, but the quality of its assets had improved substantially. If the Tsogo Sun deal went ahead, it would have 26 hotels in its portfolio.

Tsogo owns other hotels that it could inject into Hospitality.

"We can become a platform for Tsogo’s hotel properties. I t would be an exciting partnership. Through the deal, five Tsogo directors would join HPF’s board," says Mr Joyner.

Hospitality’s prized hotels include The Westin Cape Town, Radisson Blu in Granger Bay and The Crowne Plaza in Rosebank, Johannesburg.

Mr Joyner said Hospitality would consider developing new hotels, but this might happen only in about three years’ time.

"Right now it’s more expensive to build than to buy."

Grindrod Asset Management’s chief investment officer, Ian Anderson, said Hospitality needed to grow its portfolio substantially to be a specialised fund that was sizeable and one that gained support from institutional investors.




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