Opportunity Issue 115

HOSPITALITYOpportunities

HOSPITALITYOpportunities aboundin South AfricaInvestment in public infrastructure will have positive spinoffs for thecountry’s tourism industry, says Marc Wachsberger, CEO of The CapitalHotels, Apartments & Resorts. The Capital Hotel Group is investing in power,water and energy solutions to ensure that guest experiences are memorable.With 12 properties in South Africa, do you have plansto expand?We are expanding nationally, with The Capital Boardwalkin Gqeberha (Port Elizabeth) currently under construction.We are working on a pipeline of various additional sites,all in South Africa, which is our current focus. It’s difficultto raise debt for property in other parts of Africa and thereare more than enough opportunities within South Africa.What proportion of your footprint is given over to each ofthe three categories: hotels, apartments and resorts?All our properties have apartments, except for the SEVENVilla Hotel & Spa in Sandton. We have one resort underour portfolio which is The Capital Zimbali Resort in Ballito.Your website describes “hybrid hotels”: is flexibility yourunique selling proposition?Flexibility has always been at the heart of The CapitalHotel Group’s DNA. From the onset, we pioneered thehybrid-hotel model in South Africa, becoming the firstgroup to offer apart-hotels in the country. It was ourfounding concept. Today, we remain the benchmark forthis approach to hospitality, offering guests theconvenience of hotel services with the flexibility andspace of apartment-style living.Is the hybrid model more difficult to manage?Our rooms are intentionally designed as modularcomponents, allowing them to be easily adapted fordifferent guest needs and purposes. This built-in flexibilityis a core part of our operating model. Our managementteams are trained and equipped to handle this dynamicinventory with agility, enabling us to maximise occupancyand guest satisfaction without compromising on efficiencyor service.Your website states that hotels are better than Airbnbsin South Africa. Why?Tourism is built on experiences and standards are how weensure that the experiences we provide leave a lasting mark.That means cleanliness andsafety are not just buzzwords,but key pillars in how wemarket this country. At TheCapital Hotel Group, weprovide consistent quality,cleanliness, professional serviceand amenities. Our propertiesprovide jobs and help boostthe local economy throughsupplier partnerships.While Airbnbs can provide acheap and cheerful alternativeto a luxury hotel experience, The Capital on Bath is intheir varying standards and Rosebank, Johannesburgquestionable track record withguest safety can leave a lot to bedesired. The lack of regulationaround Airbnbs, especiallyin tourist hotspots such as Cape Town, doesn’t just hurtbusinesses, it compromises the guest experience.How is the Meetings, Incentives, Conferences and Events(MICE) part of your business doing?MICE is performing exceptionally well and remains asignificant contributor to our overall business. We’rewell-positioned to cater to this segment, with standoutofferings such as one of the largest conference venues inSandton. In addition, our properties are uniquely versatile– one of our hotels even accommodates full-vehicleactivations in the lobby. And of course, The CapitalZimbali remains one of South Africa’s most iconic resortdestinations, attracting high-end events and corporateretreats alike.Are you noticing trends related to the trajectory of theSA economy?The GNU has definitely improved sentiment, and we areseeing increased positivity in both domestic andinternational travel as a result. However, there is a16 | www.opportunityonline.co.za

HOSPITALITYfundamental shortage of modern, high-standardaccommodation in South Africa, with the lastmajor wave of hotel development having takenplace in 2010 for the FIFA World Cup. So, althoughthe economy is not particularly strong, there is also nonew supply and hence we are seeing good resultsfrom South Africa.The Capital Zimbali Resort in Ballito is a popular venue fortourists, events and corporate retreats.How will increased public infrastructure spending overthe next three years impact the tourism industry?This is much needed in order to foster growth, enhancevisitor experiences and strengthen the broadertourism economy. For the hospitality industry, increasedtourist arrivals (both international and domestic) arevital, therefore we need to get the basics right whenit comes to public infrastructure, the most importantbeing electricity and water infrastructure.At The Capital Hotels, Apartments and Resorts wehave stepped into action to solve electricity and waterissues by investing millions into renewable energy,backup energy (generators), water redundancy and