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SPOTLIGHT
ON PAM GOLDING HOSPITALITY
'GREEN SHOOTS' EVIDENT IN SA HOSPITALITY INDUSTRY |
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The outlook for the South African
hospitality industry remains positive and considerably
brighter when viewed against the backdrop of somewhat
sobering global trends, says Joop Demes, CEO of
Pam Golding Hospitality, a specialised hospitality
division within the Pam Golding Property group.
Resilient
"South
Africa's hospitality industry is proving very
resilient amid the global economic downturn. The
fact is that as a country we are far |
less dependent
on the overseas market as most of our business
is generated from South Africa's own domestic
market and its neighbouring countries.
In much the same way, and on the European
continent, the German hotel market relies
far more on a domestic as opposed to a foreign
market, and as a result is trading relatively
well," says Demes.
Magical Milestone
The core business of Pam Golding Hospitality
is the facilitation of transactions in the
hotel, lodge and guesthouse and restaurant
industry together with operator procurement,
the raising of finance, hotel feasibility
studies and tourism research assignments.
This division has now passed the R5 billion
mark in terms of capital value of transactions
facilitated in the Southern African hospitality
industry.
New Investment Opportunities
Pam Golding Hotels has recently been awarded
mandates regarding a number of high profile
hotel investment opportunities in Johannesburg
and Cape Town as well as a prestigious mandate
to sell a portfolio of leading boutique
hotels and lodges around South Africa.
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New Hotels
A number of exciting transactions including
new Hotels for Polokwane, Johannesburg,
Pretoria and two new Hotels for Cape Town
have been facilitated in the last three
months and will made public in the December
2009 newsletter.
Local
& Worldwide Investors
Rapidly expanding and with offices in Johannesburg,
Somerset West in the Winelands, Durban,
Port Elizabeth and Knysna, Pam Golding Lodges
& Guesthouses (PGLAG) has to date facilitated
transactions at a total value of close to
R450million – 60 to 70% concluded
on behalf of overseas investors and the
balance for South African upcountry buyers.
One-Stop Shop
PGLAG now offers, together with its
strategic partners, a one-stop shop
to buyers with services ranging from
setting up company structures to immigration
to brand and marketing consulting.
Especially for foreign buyers these
services are essential for the conclusion
of a deal. |
During their last financial year Pam Golding
Tourism & Hospitality Consulting were
awarded 22 assignments and feasibility studies
– 65% commissioned by international
hotel operators and/or investors. |
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Business
Conversions
These studies were converted into
real projects representing an estimated
capital investment of R4.3million
and providing 2 423 rooms and 2 062
direct jobs. This trend is continuing
during our current financial year
and for the first six months this
year Pam Golding Tourism & Hospitality
Consulting have completed 9 feasibility
studies – 89% commissioned by
domestic hotel operators and/or investors.
Good for Employment
Good news again for South Africa's
construction industry and job creation
is that these are now being considered
or currently being converted into
real projects representing a further
estimated capital investment of R1.5
billion and providing a further 1
185 rooms and 1 046 direct jobs.
Green Shoots Visible
Across the country are some remarkable
and encouraging 'green shoots' in
the industry. While some hotels are
suffering in a highly competitive
and challenging marketplace, these
are outweighed by those who are holding
their market share and have only experienced
a marginal reduction in turnover.
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Revpar
Pressure
To place this further in perspective,
one needs to bear in mind that
the number of rooms in South
Africa are constantly increasing
due to the opening of new hotels
and lodges as well as the launch
of new B&B's and guesthouses
– this has putting pressure
on occupancies resulting in
pressure on Revpars.
Touched by the Downturn
Taking stock for the first eight
months this year in a market
that globally is extremely competitive,
my view is that the South African
hotel industry has only been
‘touched’ as opposed
to many destinations around
the globe that have really been
hurt. |
Cape Town in Good Shape
Contrary to negative comments recently
published regarding hotels in the
Mother City of Cape Town, the well
branded hotels in South Africa and
in Cape Town remain in good shape
unlike those in many other cities
and countries in the world.
Big Brands Hold their Own
As an example of the resilience shown
locally, the Radisson Blu in Cape
Town has recorded a similar Revpar
for the first six months of this year
compared to the same period last year,
despite the opening of the One&Only
Hotel virtually next door, while the
same is true of the Table Bay Hotel,
also in Cape Town. Results such as
those achieved by well-branded hotels
are in fact far more relevant than
isolated results in a market which
is indeed very competitive.
Overspending Prevalent
On an advisory note Demes comments:
"It is unfortunately true
that in South Africa many of
the hoteliers and developers
have all been 'overspending',
from a space point of view and
therefore in terms of cost per
key. We need to be far more
aware of the square metreage
utilised for a hotel –
from bedrooms to circulation
areas, public areas and back
of house." |
HICA 2009 a Must
And with this advice comes a strong
appeal from Demes to Hotel owners,
operators, architects, quantity surveyors,
developers, financial institutions
and relevant government institutions
to visit the Hospitality Investment
Conference for Africa (HICA 2009)
which will take place from 4 to 6
November 2009 in Sandton, South Africa.
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Pam Golding
Hospitality comprises
Pam Golding Hotels, Pam
Golding Lodges & Guesthouses,
Pam Golding Hospitality
& Tourism Consulting
and Pam Golding Restaurants.
For further information
contact Joop Demes of
Pam Golding Hospitality
on +27 (0) 82 883 2231
or email
him here |
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HICA
2009 – WHY YOU SHOULD BE THERE
HICA 2009 CONFIRMS AN IMPRESSIVE SPEAKER
LINE-UP |
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The third annual,
Hospitality Investment Conference
Africa (HICA) has confirmed an impressive
speaker and topic list, as excitement
builds for the event due to take place
from 4-6 November 2009 at the Sandton
Sun.
| Day one of the conference
will include an in-depth discussion
around the Global and African
Hospitality performance with
leaders of some of leading global
hospitality brands active in
the continent. |
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The
UNWTO (United Nations World
Tourism Association) has been
publishing a Quarterly World
Tourism Barometer since 2003
and there are many forms of
information and statistics around
tourism and hospitality, which
are being published. The conference
plans to explore ways to improve
and introduce data which enhances
investor confidence and insights
into Africa.
The
first global leader’s
session will be moderated
by Nawfal Bendefa,
Senior Vice President of International
Hotel Development at Marriott
International.
Panel speakers for this session
include:
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Arthur
de Haast, Global CEO of
Jones Lang LaSalle |
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a
global consultancy
offering services
including investment
sales, mergers and
acquisitions, capital
raising, asset management,
operator selection,
industry research
and project development
services. |
| - |
Arthur
is responsible for
235 hotel experts
in 26 offices worldwide
and extensive experience
within the global
hotel and is a regular
commentator on the
global hotel investment
market. |
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The second session
around Africa’s performance
will be moderated by Mr
Joop Demes, CEO of Pam Golding
Hospitality –
part of the Pam Golding Property
empire and includes speakers
such as:
| • |
Steve
Fitzgerald, CEO of &
Beyond |
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| - |
&
Beyond is a highly
successful hospitality
organisation with
roots in Africa
that has expanded
operations and business
models into India
and Latin America.
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Steve
will provide an
African perspective
but also has a good
understanding of
global requirements
from his extensive
experience. |
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| Day two
will see the conference
opened with an address
by South Africa’s
Minister of Tourism, Marthinus
van Schalkwyk
on where the government
sees growth potential
in the industry in terms
of investment
focus. |
Legislation
and policy around tourism
is currently under review
in the country and a revised
White Paper on the industry
is expected in 2010 providing
opportunities to address
issues such as investor
incentives and minimising
red tape to maximise growth.
In addition to the above
key topics, the conference
is lining up speakers
who will provide insights
into hospitality investment
opportunities in Mozambique,
Nigeria and Angola on
the continent for the
second day and a face-to-face
interview with: |
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| • |
Kurt Ritter, President
and CEO of the Rezidor
Hotel Group. |
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Kurt
is highly acclaimed
as the longest serving
CEO in the worldwide
hotel industry and
under his leadership,
Rezidor has become
one of the fastest
growing hotel companies
in the world with
5 hotel brands in
over 60 countries,
and is now listed
on the Stockholm
Stock Exchange.
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Winner
of two Lifetime
Achievement Awards,
Kurt Ritter is considered
one of the most
respected and accomplished
leaders in the hospitality
industry worldwide
and delegates to
the HICA conference
will afforded the
opportunity to learn
firsthand something
about what makes
a hospitality organisation
great. |
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| Day three
sees the day opening with
a robust discussion on
the “Green Imperative”
and what investors will
need to consider in the
coming years. |
This session will be moderated
by Ms Jennifer Seif, Executive
Director of Fair Trade Southern
Africa (FTTSA) a passionate
advocate for sustainable and
responsible development and
certification on the continent.
Later in the day, the question
of whether sustainable development
and community beneficiation
can co-exist profitability will
also be explored.
Effect of the Global Recession
Speakers
Given the current economic climate,
no investment conference would
be complete without exploration
into the effect of the global
recession on the industry, including
the debt and lending relationship,
the changing travel demand figures
and return on investment measures.
| HICA
have secured a number
of excellent speakers
on these topics including: |
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Mr
Pieter de Bruin,
Head of FNB Commercial
and |
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Kamil Abdul Karrim,
MD of Pam Golding
Tourism & Hospitality
Consultancy, |
| - |
Arthur Gillis
of Protea Hotel
Group and |
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Graham Wood of
Southern Sun –
to mention a few. |
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| For those who
have not yet registered
for this ‘must-attend’
conference, log onto www.hica.co.za
and book your place now
or contact Zelda Coetzee
of Imfunzelelo Tourism
and Events on +27 (0)
21 762 1442 or email her
on Zelda@imfunzelelo.co.za |
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