R280 Million Development of new Hampton by Hilton in Sandton

Posted On Wednesday, 26 June 2019 14:33 Published by
Rate this item
(0 votes)

A new, 100%black-owned hotel operator is to soon enter the local market following a multi-million rand deal signed this week between Afrirent Holdings, Top Toyo Investments and Indalo Hotels & Leisure Management in terms of which an R280 million, focused service Hampton by Hilton hotel will be built in Sandton, Gauteng.

 -TOP-TOYO-

“We are pleased that we were able to successfully conclude this transaction. It has always been our vision to diversify our business interests into the tourism sector. We managed to secure the right international partners in Top Toyo Investments and Hampton by Hilton,” says CEO of Afrirent Holdings Senzo Tsabedze. The interest in the venture will be held through Afrirent’s 100% wholly-owned subsidiary, Indalo Hotels & Leisure Management.

Afrirent Holdings also has fleet management, insurance and tracking businesses from which it generates more than R400 million a year.

This is the first focused service Hampton by Hilton franchise on the African continent. The development will have about 161 rooms and is well-positioned in the Sandton area. The construction phase of the project is expected to create over 100 construction jobs and 50 permanent jobs when finished. The project is expected to be completed by December 2020.

In terms of the arrangement, Top Toyo will develop the property, which will be managed by Indalo Hotels & Leisure Management through a franchise agreement with the focused service Hampton by Hilton Brand under the wider Hilton brand.  Hampton by Hilton currently has 2338 Hotels with 237 334 Rooms globally in operation with a further 585 Hotels comprising 74 127 rooms in their pipeline. This new South African addition to the brand will see Indalo Hotels & Leisure Management becoming one of the few industry players in the tourism space with Level 1 BBB-EE  – the others being Tsogo Sun, Sun International, Peermont and aha Hotels.

Tsabedze says the timing of the investment is perfect as the tourism sector is poised for growth. The sector is now the second largest in terms of job creation in the country's economy. This is according to the latest Tourism Satellite Account (TSA) released by Statistics SA.

“Our strategy is to become a major black-owned hotel management company. We intend to make more announcements in the coming months about other investments,” concluded Tsabedze.

About Indalo Hotels & Leisure Management 

Indalo Hotels & Leisure Management is a 100% black-owned subsidiary of Afrirent holdings which is venturing into the tourism and hospitality space within the African continent. Indalo Hotels & Leisure will become a “White-Lable” hotel management company or Third Party Operator “TPO”, which operates various hotel brands under franchise agreements. Indalo Hotels & Leisure will be headed up by Andrew Rogers, an industry veteran with over 27-years of hospitality experience in Southern Africa, and who has previously established similar ventures under The Cullinan Hotels and under hospitality management company, Extrabold, both having been acquired by Tsogo Sun. Rogers said that the benefit to developers and owners by making use of the TPO model is to have the local hotel operating management expertise alongside the global benefit of the international hotel brand.

Each site will be assessed to determine the ideal brand fit. Indalo Hotels & Leisure Management’s focus is squarely on corporate, conference and leisure tourism and travellers.  Ultimately, it will also include vehicle rental (through Afrirent Car Rental), accommodation, dining management and leisure activities.

 

Last modified on Wednesday, 26 June 2019 14:46
" "

Most Popular

Equites Property Fund to list on A2X

Jun 25, 2019
ANDREA TARVENA
Equites Property Fund Limited has been approved for a secondary listing on A2X Markets…

McCormick Property Development Celebrates the Opening of Katale Square

Jun 29, 2019
 JASON MCCORMICK
McCormick Property Development celebrated the launch of its 66th development with the…

New standard bank deal will make it easier for self-employed professionals to qualify for the mortgage bonds

Jul 03, 2019
 STANDARD BANK
Ever since the tightening of credit rulings in the South African economy which followed…

Hyprop reduces exposure to Africa and provides pre-close update

Jun 29, 2019
MORNE WILKEN
JSE specialist shopping centre REIT, Hyprop, today announced progress on its strategy…

Twin City to develop new R230m mall in Vryburg, North West

Jul 10, 2019
 TWIN CITY
The North West agricultural town of Vryburg is set to get its first enclosed shopping…

Please publish modules in offcanvas position.