Tsogo Sun CEO on the takeover of Marriott hotels

As the global hotel industry grapples with the severe impacts of the COVID-19 pandemic, a recent announcement by U.S. hotel giant Marriott to exit three prominent hotels in South Africa raised concerns and sparked speculations. However, in a strategic turn of events, homegrown hotel group Tsogo Sun seized the opportunity to take over these properties to salvage them and navigate through the challenging times. Tsogo Sun Hotels CEO, Marcel von Aulock, shed light on this pivotal move in a recent interview with CNBC Africa. The discussion delved into the implications of Marriott's decision, the timeline for reopening the acquired hotels, and the formidable task of rebuilding the hospitality business amidst a global crisis. Initially, the revelation of Marriott relinquishing its leases on hotels in Mahalizburg, Durban, and Cape Town stirred uncertainty and even panic among stakeholders. However, Marcel von Aulock clarified that Tsogo Sun had previously owned these properties, with Marriott holding leases on them for several years. Contrary to misconceptions, Marriott's announcement that it would cease operations at these hotels did not indicate permanent closures. Tsogo Sun swiftly seized the opportunity to step in and take over the management of these hotels, recognizing the potential for a strategic acquisition amid the subdued hotel industry landscape. The prevailing challenges in the accommodation sector are profound, with lockdown measures and travel restrictions severely impacting hotel occupancy rates. Marcel von Aulock highlighted the industry-wide struggle, noting that Tsogo Sun had to close over a hundred hotels in a matter of days in response to the pandemic. Currently, only a fraction of their portfolio is operational, catering primarily to quarantine services, essential travel, and limited business engagements. The timeline for reopening the recently acquired hotels remains uncertain, contingent upon government regulations and consumer confidence in travel safety. Looking ahead, Marcel von Aulock acknowledged the arduous task of revitalizing the hotel business post-pandemic. Rebuilding customer trust and reestablishing brand loyalty are paramount amidst the unprecedented challenges faced by the industry. As leisure travel regulations gradually ease in South Africa, Tsogo Sun aims to leverage local market demand and restore the vibrancy of their resort properties. While international tourism may face prolonged recovery timelines, the focus remains on nurturing domestic tourism and adapting to evolving consumer preferences. In essence, the handover of Marriott hotels to Tsogo Sun signifies a strategic maneuver in a turbulent market environment. The resilience and adaptability demonstrated by Tsogo Sun reflect a forward-thinking approach to navigating the complexities of the hospitality landscape amid a global crisis. As the industry braces for an extended period of recovery, proactive measures and innovative strategies will be pivotal in reshaping the future of hospitality in South Africa.