HOTEL SECTOR
Asset injection by gaming giant invigorates Hospitality’s performance
Company is now a bell-wether for SA’s hotels and hospitality sector
Hospitality Property Fund (HPF) has undergone a substantial transformation in the past nine months, with Tsogo Sun taking over the group and injecting an assortment of 10 hotels into it. The company is now a bell-wether for SA’s hotels and hospitality sector. The group declared a distribution of 44.92c per share for the three months to the end of March 2017, resulting in a total distribution for the nine months to March of 101.01c per share, financial results showed on Wednesday. Distributable earnings rose 56.8% to R345m compared with the nine months to March 31 2016. HPF now owns 24 properties from 15 on June 30 2016. It has a market capitalisation of about R4.7bn and is the only property company listed in SA that is focused on hospitality. Last week, Tsogo Sun said it had agreed to sell 29 more hotels to HPF for R3.6bn. Since Tsogo took over HPF in 2016 and injected a slew of assets, the company’s fortunes have improved substantially. The fund’s hotel properties are predominantly...
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