Developers confident as P56m lodge launches

MBONGENI MGUNI
Staff Writer | Wednesday June 12, 2013 00:00

 

The 104-room Town Lodge Gaborone is the first asset the group has built from scratch outside South Africa, developed after extensive due diligence and site investigation. The group's other forays outside South Africa consist of 50 percent equity in two Kenyan hotels secured in 2011.On Monday, City Lodge Hotels public relations and communications advisor Angus Macmillan told Mmegi Business that since opening its doors near the Sir Seretse Khama Airport in May, Town Lodge Gaborone was gaining purchase in the market.

'We are excited that the very first hotel we have built outside South Africa is in a neighbouring country and we are very positive about the hotel's future prospects,' he said in a telephone interview from Johannesburg.'Business is slow as with any brand new hotel, especially when it operates outside its home base. However, it will pick up as the travel industry becomes aware of its existence as well as its proximity to the airport. It takes a while for a brand new hotel to really get moving but we are hoping that South African travellers to Botswana for business or leisure will use the hotel as they are familiar with the brand. Also, we expect business from Batswana who are familiar with the brand from South Africa.'

Town Lodge Gaborone is expected to tap into business and leisure air travellers, whose volumes are linked to various economic variables. Macmillan said it was difficult to gauge the hospitality sector's outlook for the year, as much depended on business confidence within the economy and other factors.He said the investment in Botswana was part of twin expansion strategies for SADC as well as East and West Africa, which were developed several years ago.

Under the twin strategies, City Lodge Hotels is sounding out potential investments in countries such as Botswana, Namibia, Zimbabwe, Zambia as well as Ghana, Kenya, Tanzania, Rwanda and Uganda.'We have had an African expansion strategy for several years but it has taken a long time to investigate markets,' Macmillan said.'Facts are very important because we cannot just build a hotel anywhere. Business travel is very important for the group and we have to find the right locations at the right price or else we may have weak returns.'

The City Lodge group has 52 hotels in South Africa, across four brands ranging from four stars to one. The group has over the years built a strong presence in the South African market and presently boasts 6,272 rooms and suites in South Africa.Town Lodge Gaborone has 12 permanent staff members including the general manager, as well as contracted outsourced staff whose number varies depending on how busy the hotel is. Apart from the general manager, all staff are Batswana.