Historic Namibia Hotel Investment – Part 1

HISTORIC NAMIBIA HOTEL INVESTMENT: WINDHOEK HOTELS ACQUISITION – Part 1

Momentous hotel acquisition agreement signed to acquire the 414-room Windhoek Safari Hotels and Conference centre property portfolio.

This off-market conference hotel complex included the unencumbered 215-key Safari Court Hotel (full service 4-star), unencumbered 199-key Hotel Safari (full service 3-star), and the Safari Court Conference Centre, the largest banquet / conference venue in Namibia, with multiple other MICE facilities.

FROM MANDATE TO DEAL CLOSED

It was an epic journey for us (TIDIA) from receiving the mandate, appointment by shareholders, to successfully close this deal with Kasada (and their strategic partner Accor).

We clearly articulated the USPs of this unique hotel investment opportunity to the buyers (Kasada) and outlined the possibilities for unlocking the upside potential of this hotel asset.

It’s always very rewarding that all the efforts and perseverance by all participants contributed to the accomplishment of this momentous acquisition deal for all parties involved.

We also feel that this deal is unequivocally fantastic news for Windhoek, and for Namibia.

COLLECTIVE EXCITEMENT

Team members from both Kasada & Accor expressed their excitement regarding this transaction, and they are enthusiastic about the vast opportunities associated with this very unique hotel asset.

Tourism stakeholders in Namibia is also excited about the likely benefits for the local hospitality industry.

GLOBAL HOTEL CHAIN COMING TO WINDHOEK!!

Accor is a world-leading augmented hospitality group offering unique and meaningful experiences in over 5,100 hotels, resorts, and residences across 110 countries.

Accor is also one of the largest international hotel chains in Africa.

The Accor portfolio in Africa includes 158 hotels (26,717 rooms) and with a further 84 new Accor hotels in the pipeline.

With Accor being one of the largest hospitality management companies in the world, Accor’s arrival in the Windhoek hospitality market is considered as an historic event, and it’s exhilarating to be involved with this accomplished.

UNIQUE ASSET PROPOSITIONS

This exceptional hotel complex is ideally configured to host large MICE events, and can also host multiple MICE events simultaneously.

There are various other unique aspects associated with this conference hotel complex that offers attractive hotel brand positioning options, operational flexibilities, and significant value creation options, and numerous other asset management benefits.

The conference hotel complex also comprises of various strategic location benefits such as the following:

i] Close proximity to multiple corporate demand generators, and several sports & leisure demand drivers,

ii] Easily accessible from major transportation corridors,

iii] Adjacent to the Windhoek city Eros Airport, which is the flight operations hub for all domestic & regional flights (e.g. FlyWestair, Wilderness Air, Fly-in Safaris, etc.).

This strategic location is advantageous for all business, leisure and transient travellers.

Additionally, there are numerous other interesting facts about this hotel complex:

1] Main Conference centre includes; (a) 1,600sqm grand ballroom, (b) 1,100sqm Foyer, (c) 270sqm Break-away areas (7 rooms).

2] Additional banquet / event spaces; (a) second 520sqm ball room, (b) 310sqm event space, (c) 400sqm marque tent.

3] 23 Meeting rooms available at the complex.

4] Various outdoor areas for recreational options, small functions, and events.

5] Car parking spaces for over 500 cars (space also available for staging hybrid events).

6] Close proximity to the Eros Airport terminal & flight operations facilities.

7] Largest Presidential Suite (245sqm) in the city.

8] Multiple food & beverage facilities.

9] Spa and treatment rooms.

10] Fitness area, Sauna & Steam rooms.

11] Solar hot water heating systems (±90% heating from solar).

12] Solar PV electricity generation systems (350 to 400 MWh production / year).

MEETINGS, INCENTIVES, CONFERENCES, & EXHIBITIONS [MICE]

The Kasada intention is to upgrade all the conferencing, banquet, meeting facilities to establish Windhoek’s place as an attractive city destination for both MICE activities, and for business travellers.

The multiple MICE facilities available at this hotel complex offers a unique proposition for event organisers / MICE planners, for example:

• 20+ Meeting / Break-out rooms (total area = 1,100sqm).
• Up to 11 sizable (200sqm and larger) indoor banquet / event areas (total area = 2,400sqm + 1,200sqm pre-assembly space).
• Various facilities for outdoor events (ideal for compliance with Covid protocols).
• 5,500sqm Conference car park for staging outdoor exhibitions, and hybrid events.

PROPERTY IMPROVEMENT PLAN [PIP]

Over N$100m (US$8m) will additionally be invested by Kasada for the refurbishment of the hotels (e.g. guest rooms, food & beverage facilities, public areas, etc.), and the MICE facilities.

The rationale for considering the international hotel chain branding options is based on gaining access to the extensive Accor global distribution channels (GDS/IDS, TMS etc.), as well as the support from the major parent company.

The brand conversion works [PIP] will be done in accordance with Accor’s premium quality international hotel brand standards for the Mövenpick brand, and the brand standards for the economy class ibis Styles brand.

DUAL-BRANDED HOTEL COMPLEX

A dual-branded hotel complex can provide the owners with an opportunity to command a larger share of the local market, maximizing potential cash flows, and producing a greater return on the asset investment.

After completing the PIP works this conference hotel complex will consist of the following:

215-key Mövenpick Hotel

199-key ibis Styles Hotel

Mövenpick Conference Centre (largest MICE venue in Namibia)

The key objective was to identify the international hotel brands that can add the most value for the particular hotel assets (Windhoek Safari Hotels & Conference centre).

In the hotel industry, energized differentiation is highly correlated to revenue per available room (RevPAR) and average daily room rate (ADR).

Market segmentation & hotel brand segmentation was one of the key criteria applied during the selection of the most suitable hotel brands – Position in market to maximise operating potential:

Correct brand positioning (competitive differences) would facilitate for Market Segment Penetration in different segments.

The brands selected will convey an image corresponding with the physical aspects of the existing hotel properties (existing 4-star Safari Court Hotel & existing 3-star Hotel Safari).

See also Part 2 for additional information.

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