Home Hotel management TransNamib takes over Swakop Hotel…aims to sell facility at later stage

TransNamib takes over Swakop Hotel…aims to sell facility at later stage

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SWAKOPMUND – After spending nearly N$103 million to acquire the remaining 50% shares of the four-star Swakopmund Hotel and Entertainment Centre, TransNamib CEO Johnny Smith says the parastatal railway company will consider selling the property in the future.

The N$350 million facility is now a 100% Namibian-owned entity after TransNamib acquired the remaining 50% shares in South African company Stocks & Stocks Leisure. Last year, a High Court judge ordered TransNamib to sell its stake in Stocks & Stocks Leisure Namibia for N$5 million.

However, the Firm went against the court’s decision by assisting TransNamib to acquire the remaining shares instead.

Smith said Friday the deal is now finalized and they have signed a new management agreement with Legacy Hospitality to manage the hotel for the next 10 years.

According to Smith, this agreement allows hotel management to innovate as the hotel repositions itself as the premier accommodation establishment on the Namibian coast.

“I am pleased to further announce that we will be investing in infrastructural improvements to the hotel which will also include refurbishing its 90 guest rooms,” he said.

When asked if TransNamib was now venturing into the hotel industry, Smith said they would still focus on their core business but the desire was for the hotel to become fully Namibian owned.

“Our intention is to sell the hotel at a later date,” Smith said.

TransNamib board chairman Lionel Matthews said it was important for shareholders to preserve jobs and for the hotel to remain sustainable.

“We looked at how we can make it work, and that’s why we’re here today. The Cabinet resolution is that TransNamib vacate the hotel within the next five years as it is not its core business. However, the reason why this deal was done is because the hotel is part of TransNamib and was part of the old railway station,” he added.

He also indicated that they are optimistic about building a sustainable business to create jobs while focusing on bringing back their customers.

The hotel is currently valued at N$350 million, but has liabilities of N$111 million and an asset base totaling N$65 million.

2022-05-09 Eveline de Klerk

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