Hospitality Property Fund targets up to 30 hotels
The latest Tsogo Sun deal creates further recovery upside for the previously embattled hotel owner
Hospitality Property Fund, the JSE’s only hotel-focused real estate investment trust (Reit), is set to increase the value of its portfolio by nearly 50% if a proposed R3.3bn deal with Tsogo Sun gets the green light. The transaction will be Hospitality’s second major acquisition from Tsogo in less than a year. The trust, which has undergone a huge restructuring over the past 12 months, last year acquired 10 of Tsogo’s hotels in a share swap deal worth R1.7bn. The deal, which became effective on September 1, brought Hospitality’s portfolio to 24 properties, worth around R7bn. Flagship assets include Radisson Blu Waterfront and the Westin in Cape Town; Crowne Plaza — The Rosebank, Radisson Blu Gautrain and Holiday Inn Sandton in Johannesburg; Mount Grace Country House & Spa near Magaliesburg; and Champagne Sports Resort in the Drakensberg. Last Friday, management issued a cautionary to coincide with the release of Hospitality’s interim results for the six months to December, saying it ...
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