Shares of the Don Group jump 5% as the hotel and leisure company announces it will reward investors with a special dividend.

Don Group sees a significant improvement in its bottom line since converting all its properties from hotels to rental apartments in 2011.

The Don Group, a hotel operator turned residential letting group, said that the disposal of its nine hotel properties would result in the group being classified as a "cash shell", which could see its listing on the JSE being suspended.

The Don Group on Tuesday announced the sale of its remaining five hotels as it looks to turn itself into a property management company.

CAPE TOWN Don Group directors Marc Wainer and Sidney Ellerine have come to the aid of the cash-strapped suite hotel group by buying and leasing back to it six properties via a vehicle called Ellwain Investments.