Gaming and leisure group Tsogo Sun and hotel operator Southern Sun have announced a R700 million investment in a new upmarket hotel, conference centre and office block development at its Montecasino precinct in Fourways, Johannesburg.
Jabu Mabuza, the group chief executive of Tsogo Sun and executive chairman of Southern Sun, said yesterday that the investment in the project, called The Pivot, increased the company's investment in its flagship Montecasino property to R2.5 billion.
Mabuza said it was the first purpose-built Southern Sun hotel to be built in 20 years and the investment was proof of the company's unwavering and steadfast belief in the strength of the local economy and the future of the leisure industry.
He said that 9 million people visited Montecasino every year and no less than 30 000 a day.
Mabuza added that the group had teamed up with Abland, who are experts in office development, but Tsogo Sun did not want to diversify into the office market.
The five-storey four-star Southern Sun Montecasino will have 194 rooms, have a large proportion of double rooms to cater for the sport and leisure market and a speciality restaurant seating 120 people, outdoor pool and leisure area, lobby bar and lounge and high spec gymnasium is planned.
It is scheduled to open on May 1 next year.
The Pivot development incorporates a 1 400m² conference centre that will be managed by Southern Sun, convenience retail outlets, including a business centre and a beauty salon, and a new 14 000m² triple A-Grade office development, which is being developed in partnership with Abland.
Graham Wood, the managing director of Southern Sun, said the hotel would increase the number of hotel rooms in the Montecasino precinct to more than 600 and provide major benefits to the casino and the whole Montecasino development.
Wood said it was Southern Sun's vision to become Africa's leading hotel brand and to achieve this it was vital for the group to expand its portfolio.
The group is also building a new hotel at the Hyde Park shopping centre, which is scheduled to open in August.
Most of the properties Southern Sun managed and operated were rebranded from when they were Holiday Inn hotels, said Wood.
He added that Southern Sun had 56 hotels in its stable, excluding the new Montecasino and Hyde Park hotels, and the group had plans to expand its Garden Court and two-star StayEasy brands.
Southern Sun had four hotels in Africa in Lusaka, Maputo, Dar es Salaam and Nairobi, plus two in the Middle East in Dubai.
Its expansion strategy involved Southern Sun's offshore development arm based in Dubai, which was looking at further expansion into Africa and the Middle East, he said.