Minor Hotel Group (MHG) on Tuesday announced the formation of a new strategic partnership with Sun International to own and operate a collection of eight properties in five African countries.
Bangkok-based MHG has invested US$63.9 million to own a 50% stake in two properties in Zambia and between 37.5% to 80% stakes in six further properties — one each in Botswana and Namibia along with two properties in Lesotho and Swaziland. The majority of the properties will be reflagged to MHG’s upscale Avani brand. The deal grows MHG’s portfolio to 118 hotels in 19 countries.
MHG will assume the hotel management, marketing and distribution of the properties under its Avani and Anantara brands, while Sun International will continue to manage the on-property casino operations and will remain as 20% to 50% shareholder in the partnership.
“Starting with these existing African properties, it is the intention of this new partnership to explore together other hotel and gaming opportunities that may arise in Africa and Asia, where MHG would manage the hotel component and Sun International would manage the casino component,” said Dillip Rajakarier, CEO of Minor Hotel Group.
The properties in this deal are:
- The 173-key Royal Livingstone Hotel in Zambia
- The 212-key Zambezi Sun in Zambia
- The 196-key Gaborone Sun in Botswana
- The 158-key Lesotho Sun in Lesotho
- The 105-key Maseru Sun in Lesotho
- The 149-key Royal Swazi in Swaziland
- The 202-key Ezulwini Sun in Swaziland
- The 173-key Kalahari Sands in Namibia
Seven of the eight properties will be rebranded to Avani. There are currently five Avani properties in operation in three countries, with a further three to be added before the end of the year in addition to these seven African properties.
The well-known Royal Livingstone Hotel will not be rebranded and will be marketed through Anantara’s distribution channels.
The new partnership will allow MHG to invest in the properties, committing to new capital expenditure to realize their revenue potential. In addition, MHG will bring its operational expertise and distribution capability to capture the growth potential of these properties. This also fits with MHG’s ongoing strategy to expand its footprint globally and increase the group’s presence in Africa, where it has existing partnerships for the ownership of Elewana Collection, eight luxury safari lodges and resorts in Kenya and Tanzania, and for five hotels in Mozambique.