05 Aug 2011
The property lease of Southern Sun Grayston Hotel in Sandton expires at the end of the year and it’s unlikely the hotel will stay open until 31 December 2011.
Asked about the impending closure of the hotel, Southern Sun said in a written statement: “Southern Sun Grayston Hotel lease expires on 31 December 2011. The hotel group has been in protracted negotiations with the property owner Cavkar Properties (Pty) Ltd in an attempt to conclude a mutually acceptable agreement for the lease extension or formulation of a new lease on the property.
“The parties have not been able to agree upon terms and conditions which are acceptable to both parties. It appears highly unlikely that the Southern Sun Grayston Hotel will continue trading beyond 31 December 2011.”
Southern Sun Hotel group has 94 hotels in Africa, Middle East and Seychelles. It is wholly owned by Tsogo Sun Holdings, an entertainment and hospitality group which also owns Tsogo Sun Gaming.
Its portfolio in Sandton includes Southern Sun Grayston, Sandton Sun, InterContinental Johannesburg, Sandton Towers, Southern Sun Katherine Street, Southern Sun Hyde Park, Garden Court Sandton City, Garden Court Sandton and Garden Court Morningside.
“We have continued to revolutionise the local hospitality industry with our innovative spirit, dynamic management and unparalleled levels of service to both local and international travellers,” said Graham Wood, managing director of Southern Sun Hotels.
He added that the group remains committed to expanding its portfolio within Sandton and is currently evaluating opportunities.
The Johannesburg Stock Exchange listed property company said the tenant, The Grace Hotel, operated by African Sun Hotels was unable to achieve a financially viable model to facilitate the continuation of hotel operations and the parties elected to terminate the lease agreement. – Denise Mhlanga
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Denise MhlangaProperty journalist at property24.com
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