Property owners of The Grace Hotel in Rosebank, Johannesburg announced that the hotel will close its doors for operations at the end of August.
Johannesburg Stock Exchange listed property Company Hyprop Investments Limited said in a statement: “If a new operator is found, it could re-open next year.”
The hotel situated at 54 Bath Avenue in Rosebank operated by African Sun Hotels was acquired by Hyprop in 2003.
African Sun Hotels operated the hotel through its South African subsidiary, The Grace Hotel (Pty) Ltd in terms of its lease agreement with Hyprop, said Nicole Greenstone, group asset manager.
“Unfortunately the tenant was unable to achieve a financially viable model to facilitate the continuation of hotel operations and the parties elected to terminate the lease agreement,” said Greenstone.
Asked about the impact on Hyprop’s revenue, Greenstone said the revenue from The Grace Hotel constitutes a very small percentage of the gross portfolio income.
“Hyprop’s primary revenue generators are its six shopping centres. As the company is in a closed period, we are not able to provide detailed financial implications as a result of the hotel closure,” she said.
She explained that Hyprop has been approached by a number of prospective hotel operators both local and international who trade in the boutique hotel arena who have expressed keen interest in re-opening the hotel. All reasonable hotel management proposals will be considered.
“It is envisaged that should a successful deal be concluded, the hotel will most likely re-open its doors in the first quarter of 2012,” said Greenstone.
Hyprop with a market capitalisation of R9 144 530 000 also owns Southern Sun Hyde Park hotel. Its portfolio includes two hotels, office and retail including Canal Walk Shopping Centre, The Glen Shopping Centre, Hyde Park Shopping Centre, The Mall of Rosebank, Stoneridge Shopping Centre and Southcoast Mall. – Denise Mhlanga
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