Peermont keeps an eye on openings for growth

Posted On Thursday, 02 June 2005 02:00 Published by
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Hotel and casino group Peermont Global will focus in the medium term on growing its existing resorts and evaluating new opportunities in southern Africa

Charlotte Mathews

Consumer Industries Editor

CAPE TOWN — Hotel and casino group Peermont Global will focus in the medium term on growing its existing resorts and evaluating new opportunities in SA and southern Africa, chairman Alan van Biljon says in the group’s latest annual report.

Peermont will also selectively consider opportunities from further afield that it can build on over time.

The group recently reported a 24,6% increase in headline earnings a share to 49,7c in the year to December compared with 2003 as revenue and margins improved. It spent R88,5m on capital expansion in the second half of last year.

The notes to the financial statements show that capital commitments were R193,6m (R58,8m) at the end of December last year.

Van Biljon said Peermont’s core competence was hotels, and it would continue to develop new hotel opportunities through securing management contracts, acquiring existing hotels, through joint ventures, lease deals and greenfields developments.

The focus will be on selected, high-growth, high-margin, high-occupancy opportunities.

The group has developed a hotel branding strategy and registered its trademarks in various international markets. The brands include Mont Regio for the six-star market, D’oreale for five-star hotels, Walmont/Mondazur in four-stars, Mondior in three stars and Metcourt for select services.

Its level of equity participation will be determined by project risk, whether the returns are above its hurdle rates, the conditions attached to contracts and whether the investment is appropriate for Peermont Global.

On international projects, most of the equity funding would likely be provided by strong local partners and international investors, Van Biljon said

Publisher: Business Day
Source: Business Day

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