Dec 04, 2009
Hyprop, Southern Sun bullish on the post-recession prospects for Hyde Park hotelBack
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In 2008, Southern Sun entered into a joint venture with Hyprop Investments to build this upmarket four-star hotel.
Hyprop will manage the hotel, which forms part of its broader expansion strategy. Southern Sun believes that the hotel is an exciting addition to its existing portfolio.
“We opened the hotel at the worst time of economic crisis and we welcome the new gross domestic product figures for the last quarter, which indicate that the recession is over. We are going to maximise occupancy for the 2010 FIFA World Cup,” Rodel said during a media visit last month.
He added that the company was still confident of the initial yield of 11% that the hotel was expected to generate.
The hotel formed part of Hyprop Investments’ R810-million expansion plan, which includes the R370-million expansion of The Glen mall, south of Johannesburg, and the R250-million Canal Walk, in Cape Town.
“The Glen is now complete and fully let. It is trading beyond our expectations,” said Rodel.
Southern Sun operations direc- tor John van Rooyen said the com- pany had seen an unprecedented increase in demand for high-quality hotel rooms, particularly in the Sandton area, where demand for more hotel beds was on the increase. “The Sandton and north- ern Johannesburg area has become a much-desired destination.”
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