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Protected: Hotel Sky, Sandton
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for sale
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Location
Summary
Hotel Sky has appointed CBRE Excellerate as its exclusive transaction advisor to present this opportunity to investors. Letters of Intent (LOI) are welcomed until noon, 4 October 2024. The owners will close the process should a satisfactory offer be received before the deadline on the 4th of October, 2024.
Hotel Sky delivers a premium experience for the discerning bleisure traveler, combining top-tier service with exceptional build quality. Each location is strategically chosen for its appeal, catering perfectly to modern business needs. Key Investment Highlights include:
- Strategic Location: Positioned in one of Africa’s key business hubs, the property offers an ideal blend of business and leisure, appealing to both business travelers and international tourists.
- Proximity to Key Landmarks: Hotel Sky Sandton is just 100 meters from the financial district and Sandton Convention Centre, a major venue for conferences and trade shows in Gauteng.
- Investment Flexibility: Available for acquisition with vacant possession, providing investors flexibility with the option to keep the current management team, engage an operator aligned with their strategic goals or explore mixed-use opportunities.
- Unique Branding: Hotel Sky offers a distinctive lifestyle brand with a high level of service, enhanced by professional management and innovative features like AI-powered robots.
- Modern Features: The hotel boasts state-of-the-art amenities, thoughtfully designed rooms, and advanced technology, enhancing the guest experience.
Situation
Sandton’s Hotel Sky is a prime business location, ideally situated in the heart of Johannesburg’s financial district. Just steps away from the Gautrain Station and major corporate headquarters, it offers unparalleled accessibility and connectivity. This prestigious address is highly sought after by top-tier corporate and financial institutions, benefiting from continuous infrastructure development in the Sandton area. Key features include:
- Prime Location: Hotel Sky is strategically located at 150 West Street, occupying a prominent corner plot with direct access to major business hubs such as the Johannesburg Stock Exchange (JSE), Sandton Convention Centre, and Sandton City Shopping Centre on Maude Street.
- Safe and Accessible: The area is known for its safety and pedestrian-friendly environment, making it highly appealing to both business travelers and tourists.
- Vibrant Community: Sandton is celebrated for its exceptional culinary scene, local attractions, parks, and entertainment venues, contributing to a dynamic and engaging community atmosphere.
- Transport Connectivity: The property is just 500 meters from the Sandton Gautrain Station, providing fast and seamless transport to and from O.R. Tambo International Airport, as well as easy access to Rosebank, Midrand, and Pretoria.
- Maude Street and Financial Hub: The property’s entrance on Maude Street connects to the Sandton Convention Centre to the east and the JSE to the west, in an area often referred to as the richest street in Africa due to the presence of financial powerhouses.
Description
The hotel is located in a prestigious node characterized by predominantly A-Grade buildings, reflecting the high-quality construction and finishes of Hotel Sky. Catering to business travelers, the hotel offers two boardrooms, a meeting room, and a multi-purpose theatre, ideal for corporate events and seminars with customizable packages available.
Recognizing the demands of business, the hotel provides a range of amenities, including a spa, gym, and rooftop pool, offering guests the opportunity to relax and recharge after a busy day. Accommodations include a mix of standard rooms, family rooms, and executive suites, catering to various preferences, including those of less price-sensitive patrons.
The on-site specialty restaurant and bar provide all-day à la carte dining. Hotel Sky stands out with its unique offering, appealing to discerning travelers who expect the highest level of service, backed by years of experience.
The property’s exceptional build quality and meticulously chosen location make it highly sought after, creating a thoughtfully designed environment tailored to meet the needs of modern businesspeople. Well-located, with maximum exposure and high service standards, this hotel represents a prime investment opportunity.
Hotel Market Overview
There has been clear growth in the ADR commanded by hotels in the Sandton node since coming out of covid-lockdowns. Last year ADR levels surpassed 2019 highs, signalling not only a strong recovery but strong demand. Tailwinds include increased investment in infrastructure and a thriving business environment.
Tuesdays, Wednesdays and Thursdays show the highest occupancy figures – suggesting that most guests are corporate travellers. On a monthly outlook November has the highest occupancy figures followed by December and February.
Strategic investments and developments in hospitality amenities and services have significantly enhanced the appeal of the property.
Tourism Overview
Gauteng’s top attractions are Sandton City/Nelson Mandela Square, Mall of Africa, as well as the Mandela House/Apartheid Museum in Soweto. The province’s top source markets include Zimbabwe, Mozambique, and Lesotho.
International tourist expenditure in Gauteng surpasses (R41,2bn in 2023) that of the Western Cape, underscoring its prominence as a premier destination for global travellers. Several key drivers contribute to this distinction, including major international events, a thriving business tourism sector, and a diverse array of unique attractions.
Property Details
| Property Description | An impressive hotel portfolio consisting of state-of-the-art technology and amenities located in Africa’s key economic hub. The property offers meeting & conference facilities, an auditorium, gyms, swimming pools and a variety of dining options for guests to indulge in. |
| Street Address | Cnr 150 West Street & Maude Street, Sandton, Johannesburg |
| Legal Description | Portion 1 Erf 6 Sandown IR |
| Gross Lettable Area | 12,625m2 |
| Number of Keys | A total of 453 keys |
| Zoning | Special |
| Occupation | The property is available with vacant possession. |
| Current Total Operating Revenue | ± R100 Million |
Property Breakdown
| Hotel Rooms | Units | Mix | Size (m²) | Size (m²) | Area (%) |
| Standard Rooms | 374 | 83% | 22 | 8 228 | 70% |
| Family Rooms | 68 | 15% | 44 | 2 992 | 26% |
| Executive Suite | 11 | 3% | 44 | 484 | 4% |
| 453 | 100% | 26 | 11 704 | 100% | |
| F&B Outlets | Units | Seats | Mix | Size (m²) | Area (%) |
| Main Restaurant & Bar | 1 | 75 | 38% | 165 | 38% |
| Speciality F&B | 1 | 75 | 38% | 165 | 38% |
| Lobby Lounge | 1 | 50 | 25% | 110 | 25% |
| 3 | 200 | 100% | 440 | 100% | |
| Meeting | Units | Seats | Size (m²) | Size (m²) | Mix (%) |
| Multi-purpose | 1 | 200 | 300 | 300 | 75% |
| Meeting Room | 1 | 30 | 45 | 45 | 11% |
| Board Room | 2 | 18 | 27 | 54 | 14% |
| 1 | 266 | 399 | 100% | ||
| Other Facilities/Activities | |||||
| Amenities | ATM | Infinity Pool (20m) | Luggage Storage | ||||
| Facilities | Gym (140 m2) | Spa (180m2) | ||||
| Experiential | Water Sports | Kids Club | ||||
VAT
The Seller has been registered for VAT (Value Added Tax) and therefore VAT is payable by the Purchaser.
Sales Process
This property is being sold by way of a Private Tender process under a Sole Mandate with CBRE Excellerate.
Interested parties will have access to the Property Brochure and NDA on registration on the CBRE-X online website.
Should you wish to access the full Due Diligence information in the ClicktoPurchase (CTP) data room, we will require you to sign the Non-Disclosure Agreement (NDA), and provide information regarding the entity and individuals represented by that entity, that is expressing an interest in the property. This can be in the form of a link to your company website, your company profile or a brief resume for both the company and key individuals involved in the transaction.
On successful review of your registration, you will be granted access to the CTP data room. Besides all DD documentation, you will also have access to the sale agreement.
Should you wish to submit an offer on the property, you will be required to provide proof of funds or comfort from a financial institution that they would favourably consider an application from yourself for funding for the property in question. Interested parties are invited to submit their best unconditional offer as soon as possible.
Only interested parties that have submitted an NDA and provided the aforementioned information, will be invited to view the property in the company of the Agent or a representative of the Seller.
FICA and KYC verification will be required in order to register on (CTP).
In the instance where a binding offer acceptable to the Seller is presented, the Seller reserves the right to accept any offer but undertakes to instruct the Agent to inform all interested parties (those that have signed a NDA and accessed the DD information via CTP) that there is an offer under consideration at least 5 business days after receipt of that offer.
The agent will present all offers to the Sellers.
All offers need to be open for acceptance for a minimum period of 15 business days from date of submission.
The agent will communicate acceptance of their offer to the winning party and inform all other parties that have not been successful.
Offers will be assessed on, amongst others, the following criteria:
The price offered.
Ability to perform and provision of comfort letter or proof of funds for the transaction in question.
Conditionality of the offer and timeline to conclude the deal.
SUBMISSION DEADLINE: 04 October 2024
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Contacts
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CBRE Excellerate
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