Minor Hotel Group of Bangkok has acquired 50 percent stake in Royal Livingstone Hotel and Zambezi Sun Hotel, and another 80 percent stake in Sun International’s six hotels across Africa at US$63.9 million.
The Bangkok-based hotel operator will hold stakes in the 196-room Gaborone Sun in Botswana, 158-room Lesotho Sun and 105 room Maseru Sun in Lesotho, 149-room Royal Swazi, 202-room Ezulwini Sun in Swaziland and the 173-room Kalahari Sands in Namibia.
The 50 percent stake in two properties in Zambia, the 173 room Royal Livingstone hotel and 212 room Zambezi Sun will be managed under a joint venture arrangement.
According to CNBC Africa, Minor has committed to invest into operations that require refurbishment in the short and medium term.
CNBC Africa diclosed that Sun International will continue to manage the casino operations situated at each of the African assets and Minor would assume day-to-day management responsibility for the hotel operations.
However, this arrangement excludes its Zambia operations which will be managed under a joint venture arrangement.
According to Sun International’s six months financial results ended December 31 2014, effective December 1, 2014, the group’s remaining interests in Namibia, Botswana and Lesotho operations will be accounted for as associates, and the Zambian operation as a joint venture.
“The interest remaining in Swaziland will likewise be treated as an associate on the imminent conclusion of the sale to Minor,” notes Sun International.
Sun International also notes that the Royal Livingstone and Zambezi Sun’s revenue went up by 15 percent in kwacha terms due to a 4.9 percent improvement in occupancies.
Sun International adds that the yellow fever vaccination requirement for Zambia that was recently lifted is expected to have a positive impact on trading.
Minor group operates over 100 hotels, resorts and serviced suites across Asia-Pacific, the Middle East, the Indian Ocean and Africa.
From : Daily-mail.
5 March 2015