Golding Hotel Investment Consultants (GHIC), a member of the Pam Golding Property group, has concluded a transaction for the sale of two Syringa Hotels situated in Gaborone and Francistown, Botswana, to Peermont Global Botswana (Pty) Ltd, for an undisclosed sum. With GHIC having been awarded the mandate to sell the hotels, the transaction was spearheaded by MD Joop Demes and Hennie Nasveld, who is in charge of GHIC's Johannesburg office.

Joop Demes, MD of GHIC, comments that this is the largest single transaction concluded in the hospitality and leisure industry in Botswana, and says the estimated replacement value of the two hotels would be in excess of R70 million. He says great interest was received from a variety of national, regional and international private investors and hotel companies. "A group such as Peermont has the ability to invest virtually anywhere in the world, and the fact that this investment was made within Southern Africa is indicative of the confidence and vision of their management team and shareholders, and underlines the tremendous opportunities and potential within the local and regional hospitality and leisure market. In addition, it is encouraging to note that Peermont, as a South African hotel company, was able to clinch this deal amid strong international competition," he says.

The purchaser is a JV between the SA based Peermont Global, which recently had a very successful launch on the Johannesburg Stock Exchange, and the Botswana Development Corporation. "This acquisition, coupled with their existing two hotels in Gaborone, establishes Peermont as the leading hotel player in Botswana, and will form the basis for further growth in the region," says Demes.

The seller, the Syringa Hotel and Lodge Group, is controlled by two shareholders from Botswana - the Hehir and the O'Connell families from Selebi Phikwe. The core activity of the two families has been within the construction industry as well as commercial and residential property development, and their entry into the hospitality industry in the 1980's was made by default, with the acquisition of a small 16 bedroom hotel in Selebi Phikwe.

Since the acquisition of the Syringa Lodge Selebi Phikwe, the shareholders have constantly redeveloped the property and today it boasts 36 bedrooms, a well appointed conference room and meeting room, a Spur franchise, casino and well matured and manicured gardens. In 2002 the development of a second Syringa Lodge situated in Francistown was completed, followed by the completion of the company's flagship in the latter part of 2003 - the Syringa Hotel in Gaborone. Says Demes: "Within five months this hotel became acknowledged as the undisputed leading hotel in Gaborone, a phenomenal success given the stiff competition from the likes of Sun International, among other highly respected establishments.

"This has been an amazing story of how two families engaged in the construction industry entered a very competitive hotel market with resounding success. However, the two families were at a crossroads as the three operations began consuming a great deal of their time. They were faced with taking a decision either to take more management on board and expand from a family business, form a JV development company with another hospitality player, or dispose of the hotels. Their decision to sell was based on the fact that construction, coupled with property development, is and will always remain their core business," says Demes.

Comments Michael Hehir, a director of the Syringa Group: "The successful facilitation of this transaction is testament to the skills and expertise of Golding Hotel Investment Consultants, who are highly respected globally.

This deal would not have materialised without their considerable input and professional level of assistance at all times."

Adds Demes: "It is always rewarding to create win-win situations, for Syringa the timing in exiting from the two operations in Gaborone and Francistown couldn't have been better, while Peermont's acquisition leaves them ideally positioned to expand in the region. Through their existing operations in the country, Peermont will without doubt be able to accelerate the strong existing cash flows in the Syringa operations."

Comments Nasveld: "The 67 room all suite hotel in Gaborone incorporates a successful News Café franchise, while the 53 room hotel in Francistown incorporates a successful Spur franchise. The Syringa Hotel Gaborone is ideally located on Mabuto Drive, approximately 200m from the main Tlokweng Border (Gaborone's border post with South Africa) traffic circle. Syringa Lodge Francistown is also well situated on the main road, right in the heart of the city opposite the Bank of Botswana and at the major confluence of all road entry points into Francistown. While there is no grading system for hotels in Botswana, they are comparable to a South African four and three star hotel, respectively. Both hotels concentrate primarily on the local and regional corporate market."

For further information contact Joop Demes on 082 883 2231.

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