Real Estate Investor Magazine South Africa September 2018 | Page 10

MASTER INVESTOR
income yield of 6,5% - 7 %. The major benefit for investors
is a guaranteed, albeit a slightly lower rental return. We also,
in turn, upgrade these units to reflect their standards and
branding.’
‘Only two percent of accommodation in South Africa is
offered in apartment hotels, while this sector accounts for
up to nine percent of the market globally. This sector is ripe
for growth because business executives travelling for short
trips or long stays increasingly prefer the spaciousness and
cost-effectiveness of self-service hotel apartments,’ Says
Marc. He also mentions that local businesses have to ‘im-
port’ skills as a result of the brain drain in South Africa, and
that a huge corporate market has stemmed from countries
like Germany and India.
They have a tried-and-tested offering that provides the
best of apartment living and the best of hotel-level service,
while still beating regular hotel prices by an average of 25%.
Travellers are always looking for value for money so they cut
out all the frills. He says, “with us you get a room, without
the frills, a toned-down service and self-catering facilities.”
A big goal in the company is keeping the tenant happy,
be profitable and to grow the company with more apart-
ments.
The first deal they secured was when they bought The
Empire building from Investec and they used the zoning
to their benefit. This was the advent of their first brand
The Capital Empire in Sandton, Johannesburg. The idea on
existing buildings was to use more bulk and less density
THE CAPITAL IS ONE OF THE LARGEST
PROVIDERS OF FULLY SERVICED
LUXURY APARTMENTS AND HOTEL
ROOMS IN THE COUNTRY. 
National operation with multiple properties in
key locations, including eight apartment hotels
in Sandton, Menlyn, Rosebank, Cape Town and
Umhlanga
Fastest growing group in South Africa, opening on
average two new hotels each year
The only hybrid operator in South Africa, with fully
serviced luxury apartments (1 500 + rooms)
Revolutionized the market by offering solutions for
short, medium a