Hotel industry development in South Africa is seeing a shift. Andrew Rogers of Hospitality Property Fund discusses acquisition and development in this TV show.

Hotel industry development funding

Well, certainly the current fund philosophy is to look at acquisition of existing hotel space and hotel product.  And that, I think will certainly, they are more distressed assets and it’s currently cheaper to acquire than to develop.  I think that however will shift enough.  I think you’ll find that certainly hotel land will become available, probably more than likely mixed use developments as opposed to standalone hotel product. And as such I think the opportunity for international investors and/or investors into South Africa space will be to probably use a fund like ourselves which is an established fund.  Your major player hotel companies are unwilling to put equity into the game.  So for us we’re able to find tenants willing to sign leases with the backing of an international brand.  And really if you’re asking me where the major development now that’s occurring, certainly Cape Town is a very attractive development now, Johannesburg will remain the business hub and traveller portal for most of Africa or Southern Africa. And then to a degree Durban, where one senses, from a major market point of view, those are the three sort of major notes in South Africa.

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