Press Office

THE GRACE CLOSURE

27 July 2011

Hyprop regretfully announces the termination of its lease agreement with The Grace Hotel (Pty) Ltd and the closure of The Grace Hotel, situated at 54 Bath Avenue Rosebank, as operated by African Sun Hotels.

The parties have reached a mutual decision to close the Hotel on 31 August 2011 due to the inability of African Sun to meet their lease obligations in light of the severe downturn in the hospitality industry.

Hyprop has been approached by a number of prospective hotel operators, both local and international, who trade in the boutique hotel arena and who have expressed keen interest in reopening the Hotel. All reasonable hotel management proposals will be considered. It is envisaged that should a successful deal be concluded, the Hotel will most likely only reopen its doors in the first quarter of 2012.

Further announcements will be made in due course.