Port Elizabeth's Marine Drive skyline is receiving its tallest addition to date and this five star luxury hotel looks set to be the definitive landmark along this stretch of PE's coastline. The whitewashed building and glass-walled exteriors of the Radisson SAS Hotel Port Elizabeth is a groundbreaking and innovative design unlike anything in the region.
The Radisson is affiliated to Auspex Property developers, The Registry Collection, Camelot Spa Group, Technogym and is a brand of The Reizdor Hotel Group. Auspex is responsible for building the hotel with its 173 sea facing suites, of which 147 are luxury, 11 business class, 12 king and 3 presidential.
The hotel's glass façade is protected by a Silent Gliss System to prevent heat gain and offers panoramic views over the Indian Ocean and Algoa Bay. The popular Hobie and Pollock beaches lie on the Radisson's doorstep and negotiations are ongoing between the developer and the local municipality to create the first private beach in Port Elizabeth through Private Public Partnership (PPP).
According to Dominique Moralee, portfolio manager for the Registry Collection (Africa), so far interested parties and buyers have not been attracted to the project by 'big media splashes.' "Rather, it's basically been word of mouth," adds Moralee. The success and rapidity with which buyers have approached the project has resulted in 80% of the units already being sold, before construction started in April 2007. "Interestingly, the majority of buyers are predominantly from the domestic market," says Adrian Zanetti, marketing director of The Registry Collection (Africa).
The 173 units are priced accordingly: the luxury suites sell for R2,05m, super luxury for R2,425m, king luxury suites for R2.65m and presidential luxury suites sell for R3,65m. All the suites have been sold, except for a few luxury suites.
The hotel is conveniently located five kilometers from both PE's International Airport and CBD, as well as 70 kilometers from Addo Elephant National Park.
An investment product
Zanetti goes on to say that the Radisson is "very much an investment product," and most of the units are based on sectional title schemes, so all the owners will be part of the body corporate, and as a result will have a say in the overall running of the hotel.
Upon purchasing a unit, investors are assured a guaranteed return on investment of 8% for the first two years, that is extended a further one year at 7,5%, after which no guarantees are assured. Currently, guaranteed returns on investment are something of a 'hot-topic', and although the Radisson has assured the hotel's financial viability at 45% with a room rate of R950, financing guaranteed returns then falls on the shoulders of management. Zanetti says he believes this guarantee will be underwritten by Auspex in the event of under-occupation.
Zanetti refers to the three years as a safety net on the relationship between investors and hotel management, as the Radisson deals with its growing pains of new marketing campaigns, building a client base and overall establishment of the iconic landmark.
Investors earn their returns in two ways; either through capital appreciation upon reselling the unit, after growth in the market has taken place or as an income strategy by collecting quarterly returns, paid out of lease proceeds.
Value added services
Primarily targeted at affluent buyers, the Radisson courtesy of their affiliation with The Registry Collection provides members with access to some of the most desireable and internationally acclaimed hotels and resorts, across the globe.
The membership with The Registry Collection is valid for a 10 year period and members are able to exchange between local and international destinations offering wildlife, spa, beach and golfing activities, as well as luxurious international experiences.
Furthermore, a concierge service is available 24 hours a day, 365 days a year. Zanetti said that Registry chose 'La Concierge', a company based out of London, to cater for members' every whim or fancy.
Zanetti further adds that the there is a "network established locally", so clients can request park passes, sports tickets, cultural or artistic performances within South Africa and overseas – the list is endless.
Concludes Bailey Schoeman, PR and Event Manager for Auspex Property, "We are thrilled about this affiliation to The Registry Collection, and are proud to be able to offer the Radisson Hotel Port Elizabeth investors the incomparable lifestyle benefits afforded through membership to The Registry Collection. The agreement between the two parties serves to reinforce the fact that Nelson Mandela Bay is undeniably a world-class travel destination." –James Monteiro
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