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Protected: Hotel Sky, Cape Town
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for sale
Private Tender
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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: The property is located in one of Africa’s key travel hubs, ideal for business travelers and international tourists, blending business and leisure (“bleisure”) experiences seamlessly.
- Prime Positioning: Hotel Sky Cape Town is situated directly across from the Cape Town International Convention Centre (CTICC), which drew over 275,000 attendees in 2023. The hotel is within 1km of the Cape Town CBD’s finance district, making it highly accessible.
- High Capacity: With a large room count, the hotel is well-positioned to meet the demand generated by events at the CTICC.
- 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.
- Modern Features: The hotel boasts state-of-the-art amenities, thoughtfully designed rooms, and advanced technology, enhancing the guest experience.
Situation
Cape Town’s Foreshore is a strategic development hub, ideally located next to the Victoria & Alfred Waterfront and the CTICC. With excellent connectivity through major highways and the MyCiti bus network, it is a preferred destination for corporate travelers. The district benefits from substantial infrastructure investments by the City of Cape Town. Key features include:
- Prime Location: Cape Town’s Foreshore is strategically located along the scenic Table Bay waterways, adjacent to the Victoria & Alfred Waterfront, and close to the city centre.
- Key Development Hub: Anchored by the Cape Town International Convention Centre (CTICC) and major hotel chains, the Foreshore serves as the gateway to the city from Cape Town International Airport along the N2 highway.
- Corporate and Financial Focus: This district is a magnet for major corporate and financial institutions, positioning it as a central development area within Cape Town.
- Infrastructure Investments: The City of Cape Town has invested significantly in public transport, notably the MyCiti bus network, which offers convenient access across the city, connecting key areas from Atlantis to Hout Bay and Sea Point to Khayelitsha.
- Accessibility: The Foreshore is easily accessible via major highways, including the N2, M3, M61, and M62, making it a vital connection point for both tourists and commuters.
Description
Located in the bustling heart of the City Bowl, Hotel Sky is positioned in a vibrant district that attracts a global audience. The area offers a diverse and lively atmosphere with an impressive selection of restaurants, historic landmarks, and vibrant bars, all underpinned by regular security patrols.
Standing 27 storeys tall, the property is a defining feature of the Cape Town skyline. Just 2 kilometers northwest of the hotel is the renowned Cape Stadium, a FIFA World Cup venue, and the scenic Green Point Park, a popular spot among runners for its breathtaking views of the Atlantic Ocean.
The hotel boasts 535 keys, with units ranging from standard rooms to family rooms and executive suites. On-site amenities include a specialty restaurant, bar, lobby lounge, gym, spa, and a rooftop pool with magnificent views of Table Mountain and the Atlantic Ocean.
Hotel Market Overview
Occupancy typically peaks between November and March and being relatively low between May and August. Occupancy has historically been higher in February which can be linked to Valentine’s holidays.
Due to demand factors, the Foreshore area has experienced a substantial increase in hotel supply from 2010 to 2019, driven by both refurbishments and new openings. This trend is set to continue, with several new developments planned, positioning the area for further expansion and investment opportunities.
Growth has been driven by growing arrivals, disposable income, and induced demand driven by new hotels.
Tourism Overview
Flight Arrivals
Cape Town receives 725 scheduled flights per week, connecting it to 36 destinations across four regions (Africa, Europe, Middle East, and North America) via 26 airlines. 78% of these flights are domestic flights, primarily from Johannesburg (50%) or Durban (12%).
Overseas flights account for 13% of Cape Town’s weekly flights, with flights from London, Doha, and Dubai being the most popular. This can be attributed to the presence of key international airport hubs in these countries.
Tourist Spending
International: International tourist spending has shown a consistent upward trajectory since emerging from the pandemic-induced lockdowns. This growth is driven by a shift in consumer mindset, with a heightened emphasis on experiences and activities. Travellers are increasingly seeking unique and immersive experiences, contributing to higher expenditure. Spending typically peaks in the fourth quarter and this can be attributed to leisure travellers being attracted by the warmer climate.
Domestic: Guiding domestic consumer spending is the emphasis on healthier lifestyle habits. Activities that centre around being in nature such as hiking, being part of a running club, playing padel and going to the beach have seen a revival in participation. Spending typically peaks in the third and fourth quarter as leisure travellers and families plan their trips in line with school recess to fully enjoy the holiday season.
Property Summary
| Property Description | An impressive hotel consisting of state-of-the-art technology and amenities located in Africa’s key economic hub. The hotel offers meeting & conference facilities, an auditorium, gyms, swimming pools and a variety of dining options for guests to indulge in. |
| Street Address | 9 Lower Long St, Foreshore, Cape Town |
| Legal Description | Erf 12 Roggebaai, City of Cape Town |
| Gross Lettable Area | 14,953m2 |
| Number of Keys | A total of 535 keys |
| Zoning | General Business |
| Occupation | The portfolio is available with vacant possession. |
| Current Total Operating Revenue | ± R140 Million |
Property Breakdown
| Hotel Rooms | Units | Mix | Size (m²) | Size (m²) | Area (%) |
| Standard Rooms | 441 | 83% | 22 | 9 702 | 70% |
| Family Rooms | 80 | 15% | 44 | 3 520 | 26% |
| Executive Suite | 13 | 3% | 44 | 572 | 4% |
| 535 | 100% | 26 | 13 794 | 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 DATE: 04 October 2024
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Contacts
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CBRE Excellerate
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