Why hospitality holds out hope for South Africa’s brighter future
We’re over the worst of it now, with regulations and restrictions in South Africa having been slowly lifted over the last while, with the final removal of mask and gathering size mandates taking place in mid-June.
While many role-players in the industry have little hope left, after the havoc wreaked by the last two years, I truly believe that there’s so much opportunity in the sector. It’s a belief I’ve had since I first launched this business during the slumps after the 2008 global economic crisis and locally, the 2010 FIFA World Cup – and I will continue to seek and find opportunities for success in hospitality.
Despite its political turmoil, South Africa remains an incredibly beautiful country, with so many diverse offerings for tourists and business travellers from abroad. While that political turmoil may have punished our currency, it makes our exceptional offerings so affordable for international visitors, who will again find us an appealing destination now that onerous virus testing requirements have been lifted.
That currency weakness also makes us an appealing destination for investment. As an example, The Capital Hotels and Apartments recently bought one of South Africa’s most iconic resort hotels, which is now know as The Capital Zimbali, in KwaZulu Natal.
Nestled among the lush forests of the KwaZulu Natal Northern Coast, situated on the beautiful along the Indian ocean and just a quick hop from the nearby King Shaka International Airport, we bought this magnificent property for just $13 million in 2022. It cost $88 million to build 12 years ago.
While we by no means take any pleasure in the fact that we could secure this remarkable asset for such a competitive price, it highlights the fact that there are great investment properties available for investors who share my long term vision for the future of the industry.
In a similar vein, we bought what is now known as The Capital 15 on Orange, in the heart of Cape Town’s sought-after City Bowl, earlier this year too, also achieving remarkable value for money.
These two five-star hotels stand as equals among some of the world’s most sought-after and exclusive hotels, and yet they offer luxurious accommodation and numerous world-class facilities for just $180 and $150 per night, respectively. Similar offerings abroad would start at $700 per night.
While we’re able to offer that exceptional value for money to guests, we’re achieving a higher purpose in the South African context: that of creating jobs, providing employment, and upskilling our people.
Courtesy of Forbes Africa – click here to read full article.