President Cyril Ramaphosa on Tuesday unveiled the biggest investment in the City of Ekurhuleni by a private investor, a R950m hotel and conference centre.
The hotel, which is scheduled to open its doors to the public on November 2, will debut global Radisson Hotel Group’s fourth brand, the upscale Radisson, in SA. It is one of the key projects and catalysts towards the realisation of Ekurhuleni’s 30-year Aerotropolis master plan that seeks to transform the city into a global logistics hub.
Ramaphosa said the investment was a show of confidence in SA’s economy during a challenging time. Of the total capital investment, R545m has been spent on the development of the 248-room hotel.
The project was developed by Akani Properties, a 100% black-owned property development, investment and management company with more than R3bn of assets under management.
The hotel and convention centre are owned 20% and 80% by Akani Properties and the Municipal Employees Pension Fund respectively and managed by the Radisson Hotel Group, one of the world’s largest hotel groups.
Ekurhuleni mayor Mzwandile Masina said the investment was well positioned and would be followed by numerous other developments.
“As a city, we are excited that a global brand such as Radisson has chosen to be located in Ekurhuleni,” Masina said.
OR Tambo (ORT) International Airport, a 10-minute drive from the new hotel, handles 20-million passengers on average each year.
The hotel development provided about 1,500 jobs during construction. More than 500 full-time operational jobs will be created at the complex itself.
Hotel industry analyst Wayne Troughton, CEO of HTI Consulting, said the hotel was a relatively large addition to Ekurhuleni.
“It’s a tough time to open a new hotel given the travel restrictions and uncertainty in the market because of the Covid-19 pandemic. But the area around ORT has proved to be strong and at a point before the pandemic, its occupancy outpaced Sandton,” he said.
Hotels in Ekurhuleni have benefited from conferencing at places such as Birchwood Hotel & Conference Centre, as well as from the overnight stays of travellers and airline crews from delayed flights.
“It’s fairly common that tour groups will spend one night in a hotel near the airport such as Emperors Palace before heading to the Kruger National Park,” Troughton said.
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