Main Photo: The Hilton Cape Town, as is….to become….?
Date: July 2020
Location: Buitengracht Street, CBD, Cape Town, South Africa
Name: The Hilton Cape Town City Centre
No. of Keys:
Owner: Millat Properties….they intend to a take time to evaluate and revitalise the hotel’s offering, including redesigning rooms.
The group plans to work on multiple design concepts and fully equip the hotel to meet the new travel demand to visit Cape Town, which would hopefully return to the pre-pandemic data that has shown an upwards year-on-year trend.
Millat Properties is part of Millat Investments – a private family office which uses its own balance sheet to bring entrepreneurial solutions to complex commercial problems; It’s sectors of expertise include real estate, technology, hospitality and financial services.
Next Manager: TBA….Global hotel chain, Hilton will no longer operate Hilton Cape Town City Centre property from this weekend, as industry continues to struggle.
Business Insider reports that the global hotel chain will hand back the property in Buitengracht Street in the CBD area of the city to the owners, Millat Properties.
In a statement posted on its website, Hilton states simply: “as of 11 July 2020, Hilton Cape Town City Centre will cease to operate as a Hilton hotel. As a result, stays booked past this date will not accrue Honors points. Please contact the hotel directly with any questions.”
Business Insider said a Hilton spokesperson had indicated the group had no plans to withdraw from the country. The company also operates Hilton Sandton and Hilton Durban. Its DoubleTree by Hilton Hotel in Woodstock, Cape Town, is managed by a franchise holder.
“We remain committed to Cape Town as a destination,” the spokesperson said. Hilton still plans to open its first boutique-style Canopy by Hilton hotel in the city towards the end of next year. The hotel, in Longkloof Studios, Gardens, will be owned and developed by property giant Growthpoint.
It was less than a year ago that Hilton announced an agreement for its milestone 100th property in Africa, which occurred during the centenary year of the US-based group. Hilton has more than 6,000 hotels and resorts in over 100 countries worldwide.
At the time, Patrick Fitzgibbon, the Senior Vice President for Development in Europe, Middle East & Africa for Hilton said: “With this being our 100th year, reaching the milestone of 100 hotels allows us to reflect on our rich legacy of pioneering tourism on the African continent but also to look to the future.”
Now, however, things are far gloomier for the hotel sector as a result of the pandemic. South African hotels are still struggling as local business travel remains limited and leisure travel by South Africans is largely non-existent, except for intra-provincial travel.
International travel seems unlikely to be allowed before year-end, given the ongoing high level of local infections.
THPT Comment: What we don’t know is who will manage and brand the hotel next…or why Hilton are vacating the property.
First Seen: The South African
The Hotel Property Team (THPT) is a small group of highly experienced business professionals. Between us, we provide a range of skills and experience which is directly relevant to those involved in the hotel property market.