Tsogo Sun’s aggressive strategy for turning the fortunes of the only hotel-focused property group on the JSE, Hospitality Property Fund (HPF), is set to receive another boost. Tsogo Sun is in turn a subsidiary of JSE-listed Hosken Consolidated Investments (HCI). Tsogo said on Thursday it had progressed with its plan of injecting new assets into HPF to make the company the dominant owner of hotels on the African continent. Tsogo gained control of HPF in 2016 when it injected 10 hotels worth R1.8bn into the company, which had been struggling to pay regular dividends and had suffered from a lack of business post the 2010 Fifa World Cup. HPF had made inconsistent profits and had a complicated dual-share ownership structure for a number of years. Tsogo cleaned up the ownership structure and took steps to smooth HPF’s income. More hotels In 2017, it added more hotels to HPF’s portfolio and is working on another deal that will further expand HPF’s business. Following this deal, "HPF is exp...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.