Ridgeside hotel prospectus september 2016

Tongaat Hulett Developments (Pty) Ltd Hotel RFP September 2016 | 1

Partnering with developers and investors to develop the Ridgeside precinct, with a strong focus on value creation and an all-inclusive approach to growth and development.

AN UNMISSABLEHOTEL OPPORTUNITY


ABOUT TONGAAT HULETThello!

AGRICULTURE &AGRI-PROCESSING

BUSINESS

focused on the complementary feedstocks

of sugarcane and maize

WE HAVEPLANNED &

FACILITATED THE DEVELOPMENT OF

over 4 000 HECTARES

of land since 1990

WE HAVE ASUBSTANTIAL

LAND PORTFOLIO

7 970developable hectares

within the primary growth and development

corridors of KwaZulu-Natal

WITHA TOTAL

INVESTMENT OF

R70 BILLIONin the region


TONGAAT HULETT’S

IS TO CREATE VALUE FOR ALL STAKEHOLDERS THROUGH AN ALL-INCLUSIVE APPROACH TO GROWTH AND DEVELOPMENTIT’S LAND CONVERSION ACTIVITIES ARE

PROVIDING A STRONG BASE FOR THIS TO OCCUR BY RESPONDING TO KEY DEMAND DRIVERS AND

THROUGH FACILITATING THE OPTIMALUSE OF IT’S LAND ASSETS

strategicvision

HIGH INTENSITYURBAN MIXED USE

PREDOMINANTLY RESIDENTIAL NEIGHBOURHOODS

UNIQUE CLUSTERS OF OPPORTUNITY

OFFICEMARKET

URBAN AMENITIES FORRESIDENTIAL NEIGHBOURHOODS

WAREHOUSING, LOGISTICS, INDUSTRIAL, BUSINESS PARK, MANUFACTURING AND BIG BOX RETAIL

HIGH-ENDMARKETS


TONGAAT HULETT’S

OUR PARTNERSHAVE INVESTED MORE THAN

R60BILLION IN DEVELOPMENTSACROSS A NUMBER OF MARKETS INCLUDING:

developments

COMMERCIAL• LaLuciaRidgeOfficeEstate

• RidgesideOfficePark

RETAIL• TheGatewayTheatreofShopping

• TheCrescentshoppingcentre

• BridgeCityMall

• CornubiaMall

LEISURE/TOURIST/RESORT• SibayaCasino

• RegalInn

• HolidayInnExpress

• HolidayInn

• TheSquareBoutiqueHotel

• CityLodgeHotelGateway

• GatewayHotel

• FairmontZimbali

RESIDENTIAL SERVICES• GatewayHospital

• CrawfordCollege

• UmhlangaCollege

HIGH END RESIDENTIAL• ZimbaliCoastalResort

• MtEdgecombe

• uMhlangaRidge

• IlalaRidge

• IzingaRidge

• Kindlewood



RIDGESIDE’S

geographiclocation

UMHLANGA

ZIMBALI

SIBAYA

IZINGAESTATE

RIDGESIDE

LALUCIAOFFICE

PARK

LALUCIARIDGE

ILALARIDGE

UMHLANGARIDGE

GATEWAY

THE CRESCENTCORNUBIA

MT EDGECOMBE

KINDLEWOOD ESTATE


WITHIN THE TOURISM SECTOR

opportunitiesTOURISM IS A PRIORITY SECTOR THAT CONTRIBUTES TO THE GDP AND CREATES MEANINGFUL EMPLOYMENT

INCREASE IN THE NUMBER OF HOTEL ROOMS AVAILABLE AND OCCUPANCIES HAVE RISEN TO 60% IN 2015

INCREASE IN FOREIGN TOURIST ARRIVALS DURING THE FIRST QUARTER OF 2016

INCREASE IN HOSPITALITY ROOMS REVENUE IN 2015 DUE TO AN INCREASE IN DOMESTIC TRAVEL

1%

15%

8%


PRICE WATERHOUSE COOPERSROOMS WITH AN AFRICAN VIEW

2016 - 2020 FORECAST

hotel outlook6

17,8

11,8

MILLION

MILLION

MILLION

DOMESTIC TRAVELLERS IN SOUTH AFRICA BY 2020

2% COMPOUND ANNUAL INCREASE

TOTAL NUMBER OF TRAVELLERS IN SOUTH AFRICA BY 2020

4,5% COMPOUND ANNUAL INCREASE

INTERNATIONAL TOURIST ARRIVALS IN SOUTH AFRICA BY 2020

RENEWED INVESTMENT ACTIVITY

2 600 ROOMS EXPECTED TO BE ADDED IN 5 YEARS

INCREASED OCCUPANCY AND VISITOR NUMBERS


AFRICA’S PREMIERBEACH DESTINATION

KwaZulu-Natal

2020COMMONWEALTH

GAMES

EXCITING ATTRACTIONS

SUPERBWEATHER

GLOBALEVENTS

KWAZULU-NATAL ACCOUNTS FOR AT LEAST30% OF ALL DOMESTIC TRIPS TAKEN ANNUALLY

OF ANNUAL INTERNATIONAL TOURIST ARRIVALS INTO SOUTH AFRICA10%


THE KEY TO BOOSTING TOURISMKING SHAKA INTERNATIONAL AIRPORTCONNECTS KZN WITH THE REST OF THE WORLD

accessability


OF THE UMHLANGA HOTEL MARKET

overview

15HOTELS

41FULL

SERVICE

%

4OF SA

MARKET

% 28OF KZN

MARKET

%

205 STARROOMS

% 204 STARROOMS

%2001HOTELROOMS

UMHLANGA HOTELS HAVE OUTPERFORMED THE SA HOTEL

MARKET IN BOTH OCCUPANCY, RATE AND REVENUE PER AVAILABLE ROOM

(REVPAR) FROM 2012 TO 2015

THERE ARE CURRENTLY NO FIVE STAR HOTELS ON UMHLANGA RIDGE AND THE ONLY INTERNATIONAL BRAND REPRESENTED IS THE HOLIDAY INN EXPRESS.

THERE HAS BEEN NO GROWTH IN HOTEL SUPPLY IN THE LAST FOUR YEARS.


OF THE UMHLANGA HOTEL MARKET

performance YTD June

Occupancy Average Daily Rate RevPar RevPar Var%

2016 2015 2014 2013 2016 2015 2014 2013 2016 2015 2014 2013 16/15 15/14

South Africa 63% 61% 61% 61% R1178 R1082 R1019 R943 R745 R660 R621 R574 13% 6%

South Africa 5 Star 66% 62% 62% 61% R2177 R1966 R1815 R1681 R1428 R1221 R1124 R1016 17% 9%



Kwazulu Natal 63% 61% 59% 63% R1029 R938 R869 R841 R646 R570 R510 R530 13% 12%

Durban & Surrounds 62% 59% 56% 64% R994 R931 R862 R832 R617 R550 R485 R530 12% 13%

Umhlanga 69% 68% 63% 66% R1249 R1113 R1032 R962 R864 R757 R653 R638 14% 16%


FORECAST OCCUPANCY, AVAILABLE ROOMS AND SUPPLY INCREASE

forecast2015 2016 2017 2018 2019 2020

Rooms Available 730 365 774 165 774 165 847 165 920 165 1 011 415

2016 ForecastOccupancy

72%

Demand Growth % 2% 2% 3% 4% 4%

Forecast Rooms Sold 528 930 531 910 547 868 569 782 592 754

Forecast Occupancy 72% 70% 72% 68% 65%

Forecast SupplyIncrease

120 rooms(6%)

200 rooms(9%)

200 rooms(8%)

200 rooms(9%)

Adjusted ForecastOccupancy

68% 70% 66% 63% 61%



OF UMHLANGA RIDGE FOR A HOTEL DEVELOPMENT

the appeal

PROXIMITY TOKING SHAKA

INTERNATIONAL

SPECTACULAR VIEWS

WORLD CLASSSHOPPING

TRENDYEATERIES

PRISTINEBEACHES

RECREATIONALENVIRONMENT

CORPORATE OFFICERELOCATIONS

THE MANY REASONS WHY INTERNATIONAL AND

DOMESTIC TRAVELLERS VISIT THROUGHOUT

THE YEAR.



RIDGESIDE SITES AVAILABLE FOR A HOTEL DEVELOPMENT

locations

PRIME POSITION LAND ON A GENTLE SEA FACING SLOPE140ha

Site B 4 987sqm

Max FAR 4,04 with a max 80% coverage

Total bulk available 20 147sqm at R4000/m

Max building height above MSL 154,45

Site A 3 667sqm

Max FAR 3.0 with a max 80% coverage

Total bulk available 11 000sqm at R4000/m

Max building height above MSL 154,45

Tongaat Hulett Developments (Pty) Ltd Hotel RFP September 2016 | 18Illustrativeonly

A

B



contactTRENLEY TILLBROOKBUSINESS DEVELOPMENT MANAGER

[email protected]

+27 31 560 1928+27 82 496 2169


www.thdev.co.za

Real Estate

Ridgeside hotel prospectus september 2016