Protea Hotels, Africa's largest hotel group, has spent the past six months creating a "multibillion-rand" fund for the acquisition of financially stressed hotels in South Africa, the Business Day reported on Monday.
"There are opportunities in South Africa. We have been looking at a couple of properties. There are a number of hotels that are under stress," CEO Arthur Gillis said.
"Some of these hotels were put together in the heydays with little or no equity during World Cup fever."
Property developers and vanity investors with no hotel experience "other than having stayed in a few" developed hotel properties in the belief that the World Cup would attract large numbers of tourists, he said.
Average hotel occupancy in South Africa in May fell to 50.5 percent from 53 percent a year earlier, according to STR Global, a hotel industry trend and data consultancy. Source: iol.co.za; To continue reading 'Click Here'.