COMPANY PROFILE

Our business model

We own or lease and manage all of our 59 hotels under our own brands and primarily operate in the selected service hotel sector, which we pioneered in South Africa.

In this way we are able to manage our products and standards in such a way as to enforce consistency throughout the group.

This consistency flows from hotel design to product offering and service. The company will lease properties both in South Africa and offshore only where it is not possible to own the land and/or buildings. Such properties would be in the minority, allowing the group to leverage off its historic low-cost model to remain competitive in the current trading environment.

Through the implementation of a rigorous refurbishment strategy, we maintain our high standards of product quality and are able to introduce advancements/improvements to our product regularly.

One such example of the benefits from this strategy is the implementation of our energy-efficiency initiative, which has reduced our absolute energy consumption by more than 38% since its initiation in 2010.

Of our revenue, approximately 90% is generated from providing tip-top and clean accommodation to business and leisure travellers in a loving and caring environment. Providing services to complement this offering such as breakfast, light meals, sundowner bars and meeting facilities, allows guests to select which services they wish to receive at an additional affordable price.

All our hotels receive the support of our central office, which manages and implements the group's strategies consistently across all our brands. As a result of this unique value proposition, we have managed to achieve an average return on equity of 23,1% over the past seven years, with a current client satisfaction rating of 86% for the past year. This was achieved against a backdrop of providing jobs to 1 661 people in South Africa and a further 342 beyond its borders, either directly or indirectly, thereby contributing to government's growth and employment objectives.

VIEW OUR ENLARGED BUSINESS MODEL

Inputs
Social and relationship
  • Guests
  • Committed suppliers
  • Communities
  • Business associates
Human
  • Engaged and skilled employees
  • Ethical environment
  • Different cultures
Intellectual
  • Trademarks
  • Proprietary knowledge
  • Systems and processes
  • Scale
Manufactured
  • Hotel buildings
  • Furniture and equipment
  • Technology
Natural
  • Physical location
  • Energy
  • Water
Financial
  • Operating cash flow
  • Debt funding
  • Equity funding
  • Economic climate
Key business processes
Hotel operations
Food and beverage
Hotel administration
Customer relationship management
Outputs/outcomes
Social and relationship
SOCIAL AND RELATIONSHIP CAPITAL
  • Guests’ satisfaction
  • Loyal supplier base
  • Social upliftment
  • Industry participation and engagement
  • Management of overheads
Strategic link

CONSOLIDATION

TRANSFORMATION
Outputs/outcomes
Human
HUMAN CAPITAL
  • Guests’ satisfaction
  • Increased loyalty
  • Low staff turnover
Strategic link

CONSOLIDATION
Outputs/outcomes
Intellectual
INTELLECTUAL CAPITAL
  • Positive brand reputation
  • Innovation
  • Improved operational efficiency
  • Standardised operating systems, policies and procedures
Strategic link

INFORMATION TECHNOLOGY

BRAND IDENTITY
Outputs/outcomes
Manufactured
MANUFACTURED CAPITAL
  • Quality accommodation
  • Comfort
  • Access to technology
  • Meeting travellers’ changing needs
Strategic link

CONSOLIDATION

AFRICA EXPANSION

INFORMATION TECHNOLOGY
Outputs/outcomes
Natural
NATURAL CAPITAL
  • Desirable product in convenient location
  • Reduced environmental footprint
  • Recycling of waste
  • Efficient consumption
Strategic link

CONSOLIDATION
Outputs/outcomes
Financial
FINANCIAL CAPITAL
  • Enhanced equity value
  • Growth in footprint
  • Optimum debt levels
  • Investment income
  • Transformed ownership

CONSOLIDATION

AFRICA EXPANSION

TRANSFORMATION