29 April 2013
South African hotel and casino group Tsogo Sun is to invest $100-million (about R900-million) in projects in Mozambique and Nigeria as part of its African growth strategy.
The Southern Sun Maputo in Mozambique will get a $30-million (R270-million) revamp of the existing 158-room hotel, as well as the addition of 110 rooms and conferencing facilities.
“The Mozambican economy has shown encouraging signs of growth in recent years, and Tsogo Sun has benefited from a strong trading at the Southern Sun Maputo,” Tsogo Sun chief executive, Marcel von Aulock, said in a statement last Wednesday.
“The group has for some time been planning to utilise the additional land owned next to the hotel and believe that this exciting expansion programme will cement the Southern Sun Maputo as the destination hotel of choice in the city.”
Approximately $70-million (R630-million) will go towards the Nigerian project. It involves the acquisition of a 75% stake in Ikoyi Hotels Limited, the holding company of the Southern Sun Ikoyi hotel in Lagos.
The hotel has been managed by Tsogo Sun since it opened in 2009, but the acquisition is subject to regulatory approvals. Shareholders will be notified once the acquisition has become effective.
“This acquisition will cement our presence within the fast growing and progressive Nigerian economy as well as provide a base from which to expand our operations in Nigeria,” Von Aulock said.
The Southern Sun Ikoyi hotel is centrally located with access to prime business nodes in Lagos and has additional land available for expansion.
Tsogo Sun currently operates hotels in seven African countries, including South Africa, Mozambique, Zambia, Tanzania, Kenya, Nigeria and the Seychelles.