Tsogo Sun to invest R900m on Africa expansion projects
JSE-listed Tsogo Sun will invest about R900-million on the refurbishment and expansion of two hotels in Africa.
It would invest R270-million on the refurbishment of its existing 158-room Southern Sun Maputo hotel, in Mozambique, as well as the expansion of the hotel to include an additional 110 rooms and conference facilities.
The hotel restaurant would also be expanded.
Further, it would invest R630-million on the acquisition of a 75% stake in Ikoyi Hotels, which owns the Southern Sun Ikoyi hotel, in Nigeria, as well as on expanding the hotel.
Tsogo Sun has been managing the Southern Sun Ikoyi hotel on behalf of the original developers since 2009.
The hotel comprises 195 guest rooms and suites, a restaurant, a business centre and meeting room facilities. Additional land was also available for future expansion.
Tsogo Sun stated that the R900-million in investments would be funded through a combination of existing offshore cash and new US dollar–based borrowing facilities.
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