Real Estate Investor Magazine South Africa October 2015 | Page 41

REI COMMERCIAL MARRIOTT INTERNATIONAL UNVEILS PLANS FOR SOUTH AFRICA M arriott International Inc. an American diversified Hospitality Company that manages and franchises a broad portfolio of hotels and related lodging facilities, plans to develop a Johannesburg hotel and executive apartments at a cost of about R1 billion, the U.S. hotelier’s first own-branded properties in South Africa. According to Marriotte, Africa is important to their growth strategy because of its rapid economic growth, growing middle class and youth population, as well as the expansion of international flights onto the continent U.S. companies including retailer Wal-Mart Stores Inc. and food-maker Kellogg Co. are expanding in Africa as household incomes rise and economies grow faster than more developed markets. Amdec Property Group, Marriott’s local partner, said in a separate e-mailed statement that Marriott’s 150-room hotel and 200-unit apartment complex would cost a combined R1 billion. Marriott agreed to buy Cape Town-based Protea Hospitality Holdings last year for about $200 million. The company expects the two brands to expand into 18 African countries from ten over the next five years, Marriott said. Cape Town’s Cape Town’s Central City Central By the numbers City By the numbers Generated property rates in the CBD in Generated property millions of rands: rates in the CBD in millions of rands: 24 216 216 23.69 23.69 23.72 24 23 23 22 2012 2012 22 21 +23% 266 266 +23% 21.7 21.5 21.5 2013 2011 2012 2013 2014 2013 2011 2012 2013 2014 5 696 5 696 Jobs generated by the financial services Jobs generated by sector in the CBD the financial services sector in the CBD 2014 2014 155 151 155 151 93 % 93 % 21.7 21 254 254 Number of companies operating in the Cape Town CBD: Number of companies operating in the Cape Town CBD: Total current value of Central City property (in billions of rands) Total current value of Central City property (in billions of rands)23.72 of companies are happy with the of companies CBD as a location aretohappy with the do business CBD as a location to do business 582 582 Companies offering legal services in the Companies offering Cape Town CBD legal services in the Cape Town CBD 155 151 155 104 151 88 104 72 88 59 72 59 104 104 88 72 59 88 72 59 Healthcare & cosmetic services Specialised services Healthcare & cosmetic services Architecture & engineering Specialised services Finance & banking services Architecture & engineering Travel services Finance & banking services IT & communication services Travel services IT & communication services Office space in the CBD 83 Office space in the CBD 86.6% 1.025 Million 86.6% 1.025 of office space in the Cape Town CBD is of office space in the occupied Cape Town CBD is occupied Million of the metro region’s Premium-grade office of the metro region’s space is in the CBD Premium-grade office space is in the CBD of A-Grade office space in the CBD of A-Grade office is occupied space in the CBD is occupied 60% 60% www.reimag.co.za Square metres of office space in the CBD Square metres of office space in the CBD 90% 90% 7183 59 71 59