Refurbishment, upgrades and expansions

The Fund continued to refurbish certain properties to strategically position them for sustainable long-term growth. During the year a
total of R109 million was invested in the following projects:

Protea Hotel Marine

The second phase of the refurbishment of the Protea Hotel Marine (Port Elizabeth) was successfully completed at a total cost of R31 million. The project included refurbishing the 70 standard bedrooms, public areas and the reception area. The market has responded positively to the refurbishment which is expected to contribute to the property’s competitive positioning.

The second phase began in August and is scheduled for completion in December 2010. This includes refurbishing the remaining standard bedrooms, public areas and the reception area. Other issues being addressed in phase 2 include a new entrance from the parking area as well as refurbishment of the façade.

Protea Hotel Edward

The recently acquired Protea Hotel Edward (Durban) has been refurbished at a cost of R12 million and was relaunched during the year to coincide with the hotel’s centenary celebration. There has been an overwhelmingly positive response to this upgrade from the trade.

Holiday Inn

The conversion of underutilised areas to additional conference
facilities at the Holiday Inn Sandton – Rivonia Road, at a total cost of R8 million was introduced to the market in June 2011 and has been positively received. These facilities have extended the hotel’s offering to the conferencing market.

Champagne Sports Resort

Construction of the new conference centre and 40 additional rooms at champagne Sports Resort (Drakensberg) at a cost of R28 million was also completed. As this property is under fixed lease, the capital cost has been rentalised.

Protea Hotel Victoria Junction

Refurbishment of the Protea Hotel Victoria Junction (cape Town) at an anticipated cost of R42 million, and the Inn on the Square (Greenmarket Square – cape Town) at an expected cost of R34 million are progressing well and these hotels are expected to open during September 2011.

Protea Hotel Hazyview

The refurbishment of the Protea Hotel Hazyview is also close to completion at a budgeted cost of R9,5 million. The project entails an upgrade of the rooms and refurbishment of the bathrooms.

On completion of these projects, all F&V lease properties will have been refurbished. This will ensure that the quality of the Fund’s properties is of the highest standard and will provide a solid platform to benefit from improved trading once the market recovers.