From Creamer Media in Johannesburg, this is the Real Economy Report.
Sashnee Moodley:
South African hotel group Orion Hotels has officially joined US hotel chain Best Western Hotels and Resorts as its local franchisee. Anine Killian tells us more.
Anine Killian:
Orion CEO Franz Gmeiner announced that 13 Orion hotels would be converted to become part of the Best Western franchise. Each of the 13 hotels would adapt Best Western brand standards, but would operate under the management of Orion Hotels.
Orion CEO Franz Gmeiner:
Anine Killian:
The two companies planned to further expand throughout Africa as Orion Hotels would continue to lease, manage and acquire new properties. The rebranding of the first three hotels – Velmoré Hotel Estate, in Pretoria; Hotel Promenade, in Nelspruit; and the Magoebaskloof Hotel, in Limpopo – was projected to be completed by July.
This would be followed by the rebranding of a further ten hotels by the end of the first quarter of 2017.
Orion CEO Franz Gmeiner:
Anine Killian:
Gmeiner said the idea to join Best Western was conceptualised last year, after which negotiations were held between the companies. He noted that Orion concluded the deal in November last year and agreement contracts were finalised in February.
He added that Orion’s property portfolio suited Best Western’s portfolio of properties.
Orion CEO Franz Gmeiner:
Anine Killian:
He added that being a member of a major hotel group would be beneficial to Orion and noted that, once the rebranding was complete, Best Western would be the biggest international hotel brand in Southern Africa
Orion CEO Franz Gmeiner:
Sashnee Moodley:
Other news making headlines this week:
SA punches above its weight in green building
And, Seifsa bemoans lack of ‘concrete plans’ to tackle slow pace of economic growth
South Africa is fast becoming a frontrunner in green building and, if its current commitment to green activity continues, the country will be a leader in the global green market in the next three years, a new report has revealed.
GBCSA CEO Brian Wilkinson:
Seifsa has welcomed government’s announced efforts to reduce its expenditure; however, the organisation remains concerned about the lack of concrete plans to address the country’s slow economic growth.
Seifsa chief economist Henk Langenhoven:
Sashnee Moodley:
That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.