The popular three-star Kei Mouth Beach Hotel will soon be a pile of rubble.

But, like a phoenix rising from the ashes, a R60 million upmarket development will be built in its place - Milkwood Hotel and Apartments.

Cliff Haddad, who bought the Wild Coast hotel four years ago, said it was time to wave the old hotel goodbye and usher in the new.

"Business went well and with the new tar road that is coming I expect that there will be a huge need for housing in Kei Mouth. In the last few years people complained that they could not drive their new cars on the old road anymore," he said.

The old 38-room hotel had also become too small and restrictive for the changing needs of holiday-goers, Haddad said.

"The hotel started small and grew bigger over the years and its infrastructure could not handle the expansions. Also, more people can't afford hotel holidays anymore and we had many requests for self-catering accommodation," he said.

The hotel started off as the Northcroft Boarding House in 1926 and was later changed to the Northcroft Hotel.

In the 1960s it was demolished and a small hotel was built on the site. It was this building that was time and again extended to its current size of 3600m².

The new development will have a total floor space of 6000m² with 24 hotel rooms and 34 apartments on four levels.

Prices for rooms and the apartments will range from R920000 to R2,2 million.

The hotel will charge 20 percent commission for rentals done on behalf of owners while the apartments can be rented out privately.

Haddad, who will manage the property, said the concept allows buyers to get a return on their capital investment each time their rooms are rented out.

At present, 11 units have been sold and Haddad plans a roadshow to Bloemfontein and Johannesburg in September to market the development.

"Most of our clients come from those areas," he said.

Receptionist Tessa de Beer said the hotel was inundated with visitors who came to see the old hotel for the last time before it closed on July 31.

For many, the establishment had valuable holiday memories and for one couple the visit was a reminder of their wedding night.

Before any construction starts, the hotel will be gutted and its contents will be auctioned this week. On Thursday, lounge suites, chairs, dining tables, bar and kitchen equipment, among other equipment will go under the hammer.

Friday will see all the material, fittings and fixtures of the hotel buildings auctioned.

Haddad said there will be some valuable materials on sale like Oregon pine floor boards and beams.

"The construction will be finished in 14 months," he said. "Just in time for the 2007 December holiday season."

Daily Dispatch
Publisher: I-Net Bridge
Source: I-Net Bridge