Pan-African hospitality conglomerate, Tsogo Sun Group, has announced its interest to acquire Ikoyi Hotels Limited, owners of Southern Sun Hotel, Ikoyi, Lagos. The group is willing to acquire about 75% stake for $70 million, and also invest $30 million for expansion in Mozambique. The group has managed the Southern Sun Hotel Ikoyi, since inception in 2009 and looking to further expansion through 2013 — in Africa.
Tsogo Sun Group has offices in South Africa, Mozambique, Tanzania, Zambia, Kenya, Nigeria and the Seychelles. The CEO of the Group, Tsogo Sun CEO Marcel Von Aulock, said, “This acquisition will cement our presence within the fast-growing and progressive Nigerian economy as well as provide a base from which to expand our operations in Nigeria. The investments totalling $100 million will be funded through a combination of existing offshore cash and new US$-based borrowing facilities.”
He continued, “The Mozambican economy has shown encouraging signs of growth in recent years, and Tsogo Sun has benefited from a strong trading performance at the Southern Sun Maputo. The group has for some time been planning to utilize the additional land owned next to the hotel and believe that this exciting expansion programme will cement the Southern Sun Maputo as the destination hotel of choice in the city.”