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