Pam Golding Hospitality Industry Consultants

The core business of Pam Golding Hospitality is the enabling of smooth business dealings within the hoteng of finance, hotel feasibilitl industry, lodge and guesthouse industry and restaurant industry. As property investment consultants they also assist with operator procurement, the raisiy studies and tourism research assignments. In terms of capital value of transactions facilitated in the Southern African hospitality industry, this division has now passed the R5 billion mark; a very impressive feat.

Pam Golding Hotels

Pam Golding Hotels are market leading property investment consultants in the servicing of the corporate hotel market of South Africa and the Indian Ocean. They specialise in hotel investment operations, development, the raising of capital as well as operator procurement.

Pam Golding Lodges And Guesthouses

Pam Golding Lodges and Guesthouses hospitality property consultants service the thriving South African market of Game Lodges, Guesthouses as well as Boutique Hotels up to approximately 45 rooms. These hospitality industry consultants lead their niche marketplace and host offices in Somerset West, Durban, Port Elizabeth and Knysna.

Pam Golding Tourism And Hospitality Consulting

Pam Golding Tourism and Hospitality Consulting is a group of hospitality industry consultants who are quickly moving towards being the leading organisation in South Africa for general consulting within the tourism and hospitality industry, as well as for their feasibility studies, valuations and research assignments. Read more below on advice given by these trusted property investment consultants.

Read more below on advice given by these trusted property investment consultants.

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October 2011 EDITOR JEFF WEINSTEIN INTERVIEWS PAM GOLDING HOSPITALITY’S JOOP DEMES AND KAMIL ADUL-KARRIM. Hotels Magazine's Editor Jeff Weinstein interviewed Pam Golding Hospitality’s Joop Demes [jd] and Kamil Adul-Karrim (kk) on 30th August2011 on the state of the hotel industry in South Africa. This is a must-read!

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Joop Demes CEO, Pam Golding Hospitality ABOUT JOOP DEMES Joop Demes, is a Chartered Accountant by profession with 25 years of hands-on experience at top executive level in the Southern African hospitality and leisure industry. Founder shareholder and CEO of Pam Golding Hospitality and Managing Director of Pam Golding Hotels, which he started in 1997, Joop formed Pam Golding Lodges and Guesthouses (Pty) Ltd (PGLAG) in 2006 and Pam Golding Hospitality & Tourism Consultants (Pty) Ltd (PGHTC) in 2007. Key Activities The key activities of the various companies within Pam Golding Hospitality include the facilitation of transactions in the hotel, lodge and guesthouse industry together with operator procurement, raising of finance and hotel feasibility studies. HICA In 2007 the Tourism Business Council of South Africa approached Joop for assistance regarding the formation & organization of an Investment Conference specifically designed for Africa. This initiative resulted in the establishment of HICA, the Hospitality Investment Conference Africa, in which Joop played a leading role for four years in a row. Value of Transactions In 2010, Pam Golding Hospitality broke the figure of $750 million in terms of capital value of transactions facilitated in the African & Indian Ocean Islands hospitality industry. Mastermind Joop has been the mastermind of a number of successful ‘condominium’ and ‘private residence clubs’ within a Hotel environment, and he consults internationally in this regard.

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August 2011 FOREIGN DEAL FLOW REMAINING STRONG IN SA GUESTHOUSE MARKET Prepared by Pam Golding Hospitality -------------------------------------------------------------------------------------------------------------------------------------------------------------- Pam Golding Lodges and Guesthouses (‘PGLAG’) continues to dominate in the South African guesthouse and lodge industry, with a fantastic choice of guesthouses and exclusive game lodges on offer through their specialised offices in the Cape, Garden Route, Eastern Cape and KZN. Noticeable Trend It is noticeable that Vendors have become far more realistic about their asking prices and this is particularly applicable in the areas of the country that are not necessarily known as top tourist attractions. In some instances sales prices have been reduced up to as much as 35%. Areas Where Guesthouses Continue To Trade Well Despite the economic slowdown, there are pockets in the country where guesthouses continue to trade well. It is here where relatively small reductions in asking prices are applicable. Areas like Knysna, Stellenbosch, Franschhoek, Somerset West, Cape Town – especially in or around the CBD – and affluent suburbs of Durban, Ballito in particular, show a remarkable resilience in prices, albeit that also here some small price adjustments are made.

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June 2011 PROMINENT 5-STAR HOTELS IN CAPE TOWN INCREASE OCCUPANCIES Prepared by Pam Golding Hospitality -------------------------------------------------------------------------------------------------------------------------------------------------------------- Named as one of the world’s ‘top travel destinations’ by global travel site, TripAdvisor, Cape Town has once again been hailed as a prime tourist spot. The Mother City’s 5-Star hotel market, however, has recently been the subject of negative speculation. Joop Demes, CEO of Pam Golding Hospitality, notes how unfortunate this is, and points out that the wrong perceptions can be created in the Cape Town tourism industry. 50% Increase “What is true is that despite the fact that over the past three years the 5-Star room inventory in Cape Town has increased in excess of 50%, a number of prominent 5-Star hotels have increased occupancies during 2010 as well as for the six-month period ended 31 March 2011,” says Joop. This increase stands to reason that Cape Town tourism is still thriving and the hotel management for these 5-Star establishments must be doing something right. Dilution Joop continues with how Cape Town tourism is flourishing despite general hospitality industry trends : “Anywhere in the world, hotel markets seeing such a significant increase in room inventory will experience a dilution in overall occupancies, and Cape Town has been no exception. This has been exacerbated by the global and local economic slowdown, however, overall the Cape Town 5-Star hotel market has performed remarkably well and is in a far better shape compared to many international cities and destinations.”

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April 2011 TOP NEW 5-STAR SHARED OWNERSHIP PRODUCT LAUNCHED IN CAPE TOWN Prepared by Pam Golding Hospitality -------------------------------------------------------------------------------------------------------------------------------------------------------------- Shared ownership at the top end of the market remains a stylish and intelligent way to own a second or third residence provided one carefully selects the correct legal structure , the right location, a residence that is part of a deluxe Hotel environment and a product with which one can enter in a quality exchange with top global resorts & destinations that do provide availability. Previous Success Pam Golding Hotels masterminded the successful launch of the Pezula Private Residence Club in Knysna about four years ago, a product that sold out within six weeks and remains the most popular and up market private residence club in Africa.

February 2011 MAJOR INCREASE IN OCCUPANCY DEMAND IN CAPE TOWN’S TOP END HOTEL SECTOR Prepared by Pam Golding Hospitality   Cape Grace & One&Only Hotels “In November 2010 both the Cape Grace and One&Only Hotels increased occupancies by over 45% compared to November 2009. Furthermore, the Cape Grace’s November 2010 occupancy was the highest for any month since the year 2002 – a notable achievement in an economy which is still in an early phase of recovery. Both these hotels report strong traction for the season ahead,” says Demes. 15 on Orange and Crystal Towers Both 15 on Orange and Crystal Towers are trading at occupancy levels, which are very respectable for hotels within their first year of trading in a competitive urban location. Cape Royale Hotel The Cape Royale Hotel opened its doors in 2008 and traded at close to 80% occupancy in November 2010, barely two years after opening.

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December/January 2011 HICA 2010 – FASCINATING! Prepared by Pam Golding Hospitality   By Joop Demes, Pam Golding Hospitality The highlight of another great conference was for me the session that was moderated by Alex Kyriakidis, the Global Managing Director of the Deloitte Tourism, Hospitality & Leisure. The Debate Alex was moderating a panel with world leaders and the debate was about the state and rapidly changing market both from a Consumer’s point of view and from a Business point of view. Change Ahead I was privileged to be invited by Alex to a private dinner party on the eve of the conference and to listen to Alex’s views in terms of how the Hospitality Industry will change between now and 2015. • To be ahead of the game in 2015 and beyond companies who are able to understand the need of new consumers will have a definite competitive advantage. • Companies will need to ensure, more than ever, that they are able to respond quickly and creatively to new consumer demands. Change in 5 Years So what is going to change in the next five years according to Alex.

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October 2010 THE TRUTH OF THE CAPE TOWN HOTEL INDUSTRY Prepared by Pam Golding Hospitality   There has been quite a bit of confusing publicity and newspaper reports about the state of the Hotel Industry in Cape Town. HBH Editor made contact with Joop Demes, CEO of Pam Golding Hospitality, to find out what the true story is in and about Cape Town: Question 1: On statistics relating to hotels in Cape Town on their occupancy rates. Are the amounts of guests staying at the hotels dropping or rising? If occupancy rates are lower than expected what is the cause? Answer: Joop Demes - There are too many inaccurate reports about the performance of Hotels in Cape Town. The latest occupancy figures available for all Hotels in Cape Town were published by STR Global show an overall room occupancy of 54.5% in Cape Town for the eight months year to date that ended 31 August 2010. This compares to 58% room occupancy for the same period in 2009. There is a 6% drop in overall occupancy but one need to remember that the overall number of room available compared to last year has grown in Cape Town with 7%. The overall guests making use of Hotels in Cape Town have therefore increased compared to last year and this is despite a World Cup period that was disappointing for the Hotels in Cape Town.

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August 2010 SURGE IN INTEREST IN HOSPITALITY ESTABLISHMENTS DURING AND AFTER THE WORLD CUP AMONG VISITORS By Peter Bruil, Director Pam Golding Lodges and Guesthouses (‘PGLAG’)   Since the Soccer World Cup kicked off Pam Golding Lodges and Guesthouses (PGLAG) – a member of Pam Golding Hospitality - has experienced an increasing demand for guesthouses and boutique hotels with a surge in enquiries from local and international visitors attending the games in South Africa as well as from investors who are overseas. Global Interest There’s no doubt that the huge boost in exposure for South Africa during this event has drawn increasing global interest in our hospitality establishments. During the tournament we were kept extremely busy showing various establishments to Chinese investors from Hong Kong as well as French investors visiting Cape Town and the Winelands during France’s participation in the World Cup.

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August 2010 WORLD CUP HOTEL PERFORMANCE IN SOUTH AFRICA   In conjunction with Pam Golding Hotels, STR Global have provided a comprehensive analyses of Occupancy, Rate and RevPAR providing a unique opportunity to analyse hotel performance during the exact dates of the World Cup period, 11th June – 11th July. The results show a picture of mixed performance among the various host cities across South Africa. Pam Golding Hotels Pam Golding Hotels is the South and Southern African market leader in hotel investment transactions and development facilitation. Having sold and transacted with many national and international corporate and private clients since inception in 1997, their geographical expertise extends across Africa and the Indian Ocean working closely with associates Savills in the UK, Europe, the Asian Pacific Rim and the USA offices as required. STR Global STR Global, a market leader in hotel benchmarking, track supply and demand data for the hotel industry and provide valuable market share analysis for all major international hotel chains and brands. With tens of thousands of hotels participating in their hotel performance surveys, they are the world’s foremost source of historical hotel performance trends on daily and monthly basis and offer the definitive global hotel database and development pipeline.

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June 2010 SOUTH AFRICAN HOTEL ROOM INVENTORY ANALYSIS Prepared by PAM GOLDING Tourism & Hospitality Consulting (Pty.) Ltd.   One of the most critical issues facing the South African Hotel Industry today is the current accelerated growth in capacity, admittedly based extensively on the unprecedented economic growth over the decade leading up to the Global contagion ignited in September 2008, which resulted in the pent-up demand for hotel accommodation all but dissipating in the wake of the immediate past economic meltdown. Conflicting Viewpoints While the prevailing capacity growth in hotel rooms is widely reported on, there is a considerable level of conflicting viewpoints being expressed and the largest challenge in this regard is invariably the unsubstantiated and unspecified basis of these reports. A ‘Dog’s Breakfast’ Publications, reports and commentary on the South African Hotel Industry Inventory Capacity are fraught with inaccuracies and misrepresentations, presenting somewhat of a ‘dog’s breakfast’ perspective on one of South Africa’s hallmark industries that compares with by far the best the World has to offer. An empirically quantified perspective to the prevailing quagmire of unsubstantiated, unspecified and often inaccurate hotel inventory capacity being published and presented currently.

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June 2010 SOUTH AFRICA AS AN INVESTMENT DESTINATION By Andreas Krensel, Managing Director, IBN Consulting   The world is currently visiting South Africa, many of them for their first time. Politicians, artists and business leaders use the World Cup to meet each other. Golden Opportunity The World Cup is a golden opportunity to prove on the one hand the pessimists wrong and show that we can plan, prepare and host the biggest sporting event of the world successfully and on the other hand interest a great number of visitors in South Africa, its people and certainly also in doing business here. In the recent years South Africa has already benefited from a significantly increasing interesting from foreign investors.

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THE BUSINESS OF HOSPITALITY By Joop Demes, CEO Pam Golding Hospitality   South Africa’s Hotel Industry performance and resilience continues to surprise many despite the industry as a whole experiencing a 2009 rand value decline in SA Rand Revpar of 9.8% (revenue per available room). City Performance • A great performance in the month of December 2009 for Durban. SA Rand Revpar was up 16.8% for the month compared to December 2008, which in terms of 2009 SA Rand Revpar percentage change pushed Durban ahead of Johannesburg, Cape Town, Nelspruit and Pretoria. • Durban experienced the smallest percentage decline (7.2%) in SA Rand Revpar during 2009 compared to 2008. • The annual decline for Cape Town was 9.3% and for Johannesburg 10.7%.

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ECONOMIC AND EMPLOYMENT SPIN-OFFS FROM OVERSEAS GUESTHOUSE INVESTORS By Peter Bruil, Director, Pam Golding Lodges and Guesthouses   Foreigners who purchase property in South Africa in order to relocate often launch new businesses here, thereby creating job opportunities while injecting much-needed capital investment into the country. Reasons to Relocate "Such immigrants often make the decision to relocate after spending a holiday in South Africa, and as many hail from a successful but hectic corporate background, they seek a more relaxed lifestyle," says Peter Bruil, a director of Pam Golding Lodges & Guesthouses (PGLAG) – a division of Pam Golding Hospitality.

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DESPITE RECESSION, LONG TERM OUTLOOK FOR HOTEL INDUSTRY REMAINS HEALTHY   The South African hotel industry has enjoyed extremely sound growth from 2002 to 2008, with double-digit growth over the past three years (as reported by Smith Travel Research (STR) in their SA Hotel Benchmark Survey), with occupancy levels over the past four years averaging at a consistently high 71%.

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BLACK ECONOMIC EMPOWERMENT AND THE TOURISM CODE   The long-awaited Tourism Sector Code on black economic empowerment was published in the Government Gazette and was effective as of 22 May 2009. It applies to all accommodation, hospitality, travel and related services including: • B&B’s • Guesthouses • Game lodges • Backpackers • Restaurants • Professional catering • Tourist guides, etc

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SPOTLIGHT ON PAM GOLDING HOSPITALITY 'GREEN SHOOTS' EVIDENT IN SA HOSPITALITY INDUSTRY   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.