HYPROP AND SOUTHERN SUN JOIN FORCES IN R180 MILLION HOTEL DEVELOPMENT
As part of its asset enhancing strategy, JSE retail property fund Hyprop Investments is planning an upmarket four-star hotel at Hyde Park Shopping Centre at a total cost of R180 million and an anticipated yield of 11,4%. The hotel will be developed together with Southern Sun who will manage it on opening, anticipated to be in June 2009.
Hyprop CEO Pieter Prinsloo says the hotel will be an exciting addition to the successful Hyde Park Shopping Centre. “In light of the expected tourist influx to the country, we identified leisure development as a strategic complement to successful upmarket retail. The quality of the Southern Sun Hyde Park will reflect and further enhance the exclusivity and luxury profile of the centre.”
According to Southern Sun Managing Director, Helder Pereira, the group’s involvement in the development was a natural progression from its growth and re-positioning strategy; “Southern Sun has invested significantly in a refurbishment and expansion strategy over the past few years, and we believe that the hotel will be an exciting addition to our existing portfolio”.
As Southern Africa’s leading hotel group and part of the Tsogo Sun Group, Southern Sun forms a benchmark for new product development and service standards in the leisure industry: “The location is ideal and the hotel and its offering will appeal to our target market. We believe that it is an exciting development that will serve our business objectives well into the future,” adds Mark Boyd, Southern Sun’s New Development Director.
The three storey hotel will be built above the shopping centre’s existing seven storey parking garage. Prinsloo explains that “the 132 rooms and public areas will face north, providing panoramic views of Johannesburg’s northern suburbs.” He adds that as the 8th floor entrance to the new hotel will be linked to the upper mall of the shopping centre, anticipated tourist footfall should boost retail spend.
Council approval has been received and construction is set to commence in May 2008.
“The development of The Southern Sun Hyde Park is in line with our strategy to further enhance the existing portfolio and strengthen our market position through expansion to extract maximum value from our assets,” says Prinsloo.
Prinsloo concludes: “The new hotel together with developments at our shopping centres is expected to help drive further growth in a tightening market.”