By Janet Parker

The Don Group, which owns the Don suite hotel chain, intends to capitalise on SA’s stabilised economic growth, 2010 World Cup opportunities and the burgeoning tourism industry to boost its performance.

Don Group CEO Thabiso Tlelai said in the annual report that the positive results Don had achieved for its full year to end June had “given management and staff a solid platform from which to achieve that objective”.

The group is also keeping its eye on expansion opportunities locally and elsewhere in Africa.

Don is SA’s largest suite hotel group, and pioneered the concept of all-suite hotels in SA in the early 1980s. It has hotels in Cape Town, Johannesburg, Sandton and Pretoria.

When Tlelai assumed control of Don in late 1999, it had liabilities of more than R100m.

Tlelai said the value inherent in the group’s property portfolio augured well for the expansion of the brand. “Management believes all metropolitan areas of SA and the continent of Africa present fertile ground for investment in hotels.”

Tlelai said that removing a few “historical impediments” — among them a tax liability of R2m, which is now fully paid off — left the road open for improving financial performance and continued profit growth.

For the year to end-June the group shook off a loss of R5,3m (due to the deferred tax of R2m) and posted a 74% increase in net attributable profit to R5,1m.

It was the third year in a row the company’s operating profit increased, growing from R3,9m in 2005 to last year’s R15,3m. Revenue rose 27% to R62,6m due to “modest” increases in the group’s rates, and increasing demand for accommodation.