MINOR Hotel Group (MHG) announced yesterday a strategic tie-up with Sun International to own and operate eight properties across five African countries.
Under the terms of the new agreement, the Bangkok-based hotel operator is investing US$63.9 million to own a 50 per cent stake in two properties in Zambia – the 173-key Royal Livingstone Hotel and 212-key Zambezi Sun.
For that sum it will also hold stakes of between 37.5-80 per cent in six further properties: the 196-key Gaborone Sun in Botswana; the 158-key Lesotho Sun and 105-key Maseru Sun in Lesotho; the 149-key Royal Swazi and the 202-key Ezulwini Sun in Swaziland; and the 173-key Kalahari Sands in Namibia.
Seven of the eight properties will be rebranded to MHG’s upscale Avani brand, except the renown Royal Livingstone Hotel.
Dillip Rajakarier, CEO of Minor Hotel Group, said: “MHG is strategically expanding its hospitality business into many regions and Africa is a key focus where we have seen substantial growth potential. We are excited to be partnering with Sun International with their vast experience on the continent and this latest acquisition significantly strengthens MHG’s position in Africa.
“Starting with these existing African properties, it is the intention of this new partnership to explore together other hotel and gaming opportunities that may arise in Africa and Asia, where MHG would manage the hotel component and Sun International would manage the casino component”.
The collaboration with Sun dovetails with MHG’s ongoing strategy to increase its presence in Africa, where it has existing partnerships for the ownership of Elewana Collection, eight luxury safari lodges and resorts in Kenya and Tanzania, and for five hotels in Mozambique.
Sun International’s chief executive, Graeme Stephens, remarked: “With MHG now taking the bulk of management responsibility for these properties, this allows Sun International and its management team to increase their focus on the core casino assets that are driving its financial performance and strategy. In addition, Sun International will remain as 20-50 per cent shareholder in the partnership and will continue to benefit in the future growth of these properties.”
MHG operates over 100 hotels, resorts, and serviced suites across Asia-Pacific, the Middle East, the Indian Ocean, and Africa.
