Vincent Joyner, CEO of the Hospitality Property Fund of South Africa, spoke to Bench events about their plans to expand outside South Africa. With a massive growth expected for their current asset base, Vincent speaks about how HPF’s approach will be different across the continent.
Some of the key points from the video include:
What’s the current state of play at HPF?
We currently we have 25 hotels in South Africa. We’ll be doubling that at least of the next year, so will be moving from about a 7 billion asset base to a 15 billion asset base. Once we’ve accomplished that, we’ll be some organic growth year-on-year but perhaps the next frontier for us is other African countries.
How do you see the African opportunity as an investor and what are you looking for?
Well I think Africa’s growing and everybody sees that and despite some pickups here in there the continent is going at a steady pace of the last 20 or 30 years in the hotel business were looking for long-term investment so they constantly mother is that much so we just looking for good corporate governance where our real estate would be secure as we invest in different countries.
How does your investment approach differ from South Africa to the other African countries?
South Africa may be slightly different from other African countries as we develop. So in the South African context, we operate within Marriott’s, the Rezidor’s and some of the big brands worldwide but also small local local players with a few hotels, or even one hotel with 665 bedrooms that’s operated by single brand.
So each context is different. Going forward into the African context, we will probably look at the three, two and one star products rather than the four and five star products… We may be willing to take developmental risk in the one, two and three stars going forward. That may be a separate fund to the existing HPF, or [a fund] totally different to that.