Our Vision for the Future
We believe that the current political and economic turmoil in the country will pass, and that the low point will be during the next year or two. Despite this turmoil, the hotel has traded successfully during the last few years.
We believe that tourism, hotel and conferencing markets in South Africa will continue to grow, and our business will grow correspondingly.
The build pace of competitive hotels will slow markedly, as the high escalations in building costs are making it difficult for hoteliers to make new-build hotels viable.
The new Johannesburg Mayor is avidly supporting urban renewal in the inner city. More than that, he has instigated a major street and pedestrian walkway upgrade that puts the hotel in the centre of a far reaching urban renewal initiative, linking the Gautrain Park Station with the civic precinct and the rest of Braamfontein, extending all the way to Wits University.
All of this is positively impacting our hotel, and has engendered a change in the demographics of our guests. Older guests are being replaced with younger people, many of them Millennials, who look for state of the art technology and for socially interactive hotels. We are successfully catering to these needs in our modernisation of the hotel, and capturing the loyalty of these younger guests, by giving them what they want.
In 2015 we extended our franchise with Protea by Marriott for a period of 10 years. In the process we carried out a thorough analysis of all the hotel franchise organisations in South Africa available to independent hotels like ours.
We concluded that we have an extremely valuable hotel property which has more hotel occupancy generators in our trade area than almost any other hotel in the country. These include Provincial and Local government, corporate and banking headquarters, universities, political and trade union headquarters, hospitals, court facilities (the Constitutional Court), sporting facilities and transport hubs (Park Station and the Gautrain terminal).
We trust that we will enjoy continued support from Marriott Hotels, and that we will be able to either extend our franchise, or find a suitable alternative international hotel franchisor.
We thus believe that the best years for our hotel, and its investors, are ahead of us and not behind us. We feel that the urban renewal of Johannesburg City, Braamfontein and Parktown will accelerate. Further, that this will feed through into faster property growth, better income generation and greater prosperity for our hotel and our Sectional Title hotel room investors.
We thus believe that we can maintain and improve on our good property investment record as shown on the webpage under INVESTMENT DETAILS headed Ten Year Comparison with Other Investments.