Three hectares of land in Irene, Pretoria, have been made available for the development of a hotel, offices and a conference centre – all of which form part of developments in the greater Irene area that will lead to R10 billion of developments.
This is according to Org Geldenhuys, MD of property development and marketing company, Abacus DIVISIONS. “As the hotel property market continues to recover from the post Soccer World Cup slump, hotel groups will be looking for strategic growth – and this opportunity in Irene will arguably be considered by a number of hotel developers, or hotel groups,” said Geldenhuys.
“Another development taking place in Irene is the release of 14 hectares of land, earmarked for the development of 850 residential properties. This comes hot on the heels of the completion of the boutique office park, Quattro Fontane – as well as the recent launch of the Rietvlei Industrial Estate. All these are prime developments and are part and parcel ofapproximately 1.5million square metres of bulk set aside by the two major players in the greaterin the greater Irene area. “
Commenting further on the hotel property market, Geldenhuys said analysts and CEOs in the sector have claimed that companies have now turned the corner, after a trying period during which oversupply -due to the developments for the 2010 Soccer World Cup – led to overall low occupation of the properties. Last year, however, hotels were able to raise room rates without putting downward pressure on occupancy rates growth.
“In fact, across the board, the industry saw an increase in the average daily rate for rooms. This was across all stars. This suggests that hotel owners and managers are confident that demand is high.
“The land set aside for thehotel development in Irene,” said Geldenhuys “is likely to see a number of hotel groups taking a very close look at the market potential of investing in the area, with a view to capitalizing on developments in the pipeline – where the demand for hotel and conferencing facilities will far outstrip the currently supply in the area.”