Golding Hotel Investment Consultants (Pty) Ltd, a subsidiary of the Pam Golding Property group, has concluded a transaction for the sale of the Cape Manor Hotel, an 84 bedroom, three star hotel situated on the corner of Beach and Marais Roads in Sea Point, Cape Town, for an undisclosed sum.

Joop Demes, MD of Golding Hotel Investment Consultants (GHIC), says this deal follows hot on the heels of his key role in facilitating the recent sale of the renowned Bushmans Kloof Wilderness Reserve near Clanwilliam. A key player in the hospitality and leisure industry in Southern Africa and abroad, GHIC during 2003 facilitated a number of significant transactions representing a total capital investment of in excess of R500 million, and including the launch of the Pezula Hotel on the Garden Route.

Owned by the Yssel family, who also own a hotel in Bloemfontein - the successful Cape Manor Hotel was not actually on the market.

Explains Demes: "I was approached by Gwyn Bassingthwaighte, who runs the commercial division of Pam Golding Properties' franchise office in East London, who had a client with interests in the hospitality industry in the Eastern Cape who was seeking a presence - particularly in the 3 star market - in Cape Town. A quality product in this location would not only complement his existing operations, it would also provide entrée to a city which has become one of the prime destinations in the world.

"An innovative operator in the hospitality industry, the client - Premier International Hotels and Resorts - had taken note of the growth being experienced in the 3 star market in Cape Town. According to the Deloitte & Touche HotelBenchmark Survey, and in terms of revenue per available room (Revpar), during 2003 the 3 star market has been achieving growth in excess of 26 percent per annum, which when inflation is taken into account represents 18-20 percent real growth, and which by a material margin has bee n outperforming the top end of the market."

Demes says after a flurry in activity in several major products at the top end of the market, including the opening of the Arabella Sheraton on the Foreshore, the successful launch of Claridges hotel in Green Point, and 'The One and Only' in the Waterfront, the emerging focus is currently on the 3 star market. He says appealing to a significant sector of the local market, with the added benefits of also being attractive to overseas visitors - bearing in mind the strengthening of the Rand, three star products are rapidly enjoying increasing interest among investors.

Up and coming Sea Point

Commenting on the Cape Manor Hotel's convenient location in Sea Point, Demes says this is an up and coming area which is seeing a resurgence in interest that is rapidly gathering momentum. "Last year a major international client made an offer - which was subsequently declined - on a four star hotel in Sea Point's beachfront area, which was in excess of R400 000 per room.

Overseas investors can perceive the potential of the area and view it in a different light and more objectively perhaps some of us locals. They appreciate its own particular brand of almost suburban living blended with a lively street feel - with the Promenade, restaurants and leisure facilities right on its doorstep - and possibly comparable with New York's own Manhattan.

"Viewed in terms of both quality of product and suitability of location, the well-patronised and efficiently run Cape Manor Hotel in Sea Point makes perfect sense from an investment perspective. For investors wishing to cater for a three star market one needs to acquire a product at a related price, and in a desirable location. With Cape Town being a premium destination, those in the hospitality industry have tended to look towards either the Waterfront area, Camp's Bay, or immediate surrounds, often completely overlooking Sea Point." But, says Demes, that trend is now changing.

Dr Andrew Golding, chief executive of the Pam Golding Property group, says following the tremendous opportunities evidenced through Green Point's emergence as one of Cape Town's most vibrant and desirable areas, nearby Sea Point is poised to reinvent itself, and is starting to reap the spillover benefits from Green Point - such as the successful launch of Claridges - with other exciting projects in the pipeline, and most importantly, with a growing demand for homes in the area.

"Well-positioned with easy access to the V&A Waterfront, the new Cape Town International Convention Centre and the hub of Cape Town itself, Sea Point has been underrated for several years but is already seeing positive action and new trends emerge. For example, the installation of CCTV cameras should significantly improve security and further boost confidence in the area.

From a residential property perspective PGP is involved in a number of new developments and redevelopments currently being launched in the area, which in turn will provide spin-offs in terms of boosting the local economy, enhancing property values, and stimulating further interest in the property market," he says.

Following the Cape Manor Hotel transaction, Demes adds that two further sizeable hotel deals are currently being negotiated by Golding Hotel Investment Consultants in the Sea Point area. The hotels provide a combined capacity in excess of 250 rooms and investors are both local and overseas.

Ends 

Issued by Gaye de Villiers

Tel: 021 6837788 or 083 325 1939

On behalf of Golding Hotel Investment Consultants