KwaZulu-Natal Correspondent

DURBAN Black empowerment group Akani Leisure Investment and hotel management company Three Cities Hospitality have formed a joint venture hospitality management company, Akani Hotels, in a move that will focus on three- and four-star resorts, game lodges and city hotels.

Three Cities recently sold a percentage of the group to key black management and intends being 25% black-owned by early next year.

Another 25% of the group will be sold to black shareholders in the next few years, but MD Alan Vels said this was the first empowerment deal concluded in the Three Cities hotel division.

The move opened doors previously closed to Three Cities both in terms of a new brand and by having the black empowerment credentials.

In terms of the deal, Akani Leisure will hold 60% of Akani Hotels and Three Cities 40%.

Akani CEO Thabo Moloko said the venture "set the stage" for the diversified empowerment group by moving into hotel management. It operates casino management contracts in Gauteng and KwaZulu-Natal and brought several properties and management contracts to the deal.

Vels said Three Cities brought its full ambit of management and marketing services to the table, including central reservations, information technology support, group purchasing, training and domestic and international marketing.

He said the deal enabled Three Cities to develop another brand with hotels not in its portfolio. This would provide management contract opportunities both inside and outside SA and boost the domestic and international marketing ability.

The venture also broadened opportunities for placing black trainees in a greater number of properties and thus growing the tourism base throughout Africa.

Akani Hotels MD Rob Williams said the Eastern Cape Tourism Board had already awarded Akani Hotels the R28m contract for tourism development in the Double Drift Reserve, while another four opportunities worth R92m were in the pipeline.

Details of these would be announced when the negotiations were finalised.

"Broadly, Akani Hotels has identified several properties in key geographic regions inside and outside SA for either purchase or management contracts," Moloko said.

Founded in 1996 as an empowerment leisure company focused on gaming, hospitality services and theme parks, Akani Leisure shareholders include Aka Capital, Siphumelele Investments, Black Management Forum Investment Company, Youth Investment Network, G7 Investments, Xau Women's Investment, Young Women's Christian Association and Prime Portfolio Investment.

Three Cities was established in 1988 with a portfolio of four hotels in Durban, Cape Town and Johannesburg. It now manages 34 properties in southern Africa with core competencies in city hotels, boutique hotels, game lodges, resorts and restaurants.

Oct 03 2003 07:15:47:000AM  Nicola Jenvey Business Day 1st Edition