African Sun Sets on Jhb Properties

African Sun has opted not to renew its operating agreements with both of its Johannesburg properties. It will exit out of its operating agreement for The Grace in Rosebank and the hotel will cease to operate on 31 August, while the lease agreement for The Lakes Hotel and Conference Centre, near OR Tambo International Airport, will come to an end from 31 July. 


Hyprop Investments Ltd, the lessees of The Grace Hotel will assess its options in respect to the building. African Sun cites the reduction in overseas and domestic travellers, coupled with the continued pressure of the global recession and rapidly escalating running costs as making the businesses unsustainable. African Sun’s central reservations and marketing will remain in Johannesburg. African Sun will be adding 231 rooms to its portfolio by December. These will be through the acquisition of another Holiday Inn with 153 rooms in Gaborone and a management contract under the Best Western brand in Benin City, Nigeria, comprising 80 rooms. New signings include a three star, 201-roomed business hotel, Amber Express in Accra, Ghana, scheduled for completion within the next two years.