Despite reporting a flat operating profit for H1, South African hotels, gaming and entertainments firm Tsogo Sun Holdings has stated it intends to purchase additional venues in the UK.
[dropcap]A[/dropcap]t present, the Johannesburg-based firm operates 14 gaming and entertainment destinations in six of South Africa’s provinces including The Ridge Casino, The Caledon Casino Hotel Spa and Montecasino with additional interests in Nigeria, Kenya and Mozambique.
“Growth will depend on the future performance of these economies as well as the level of policy certainty in South Africa,” said Marcel Von Aulock, CEO of Tsogo Sun Holdings, speaking to Reuters.
We’ve put about $35.26m (E33.3m) into the UK market, which is doing quite well for us
Africa’s biggest hotels and gambling operator, Tsogo Sun already owns eight hotels in the UK through its subsidiary International Hotel Properties.
The company has stated that weakness in the pound following the UK’s vote to exit the European Union in June’s referendum has made its decision much more affordable while it expects conditions outside of the British market to remain challenging into the future.
“We’ve put about $35.26m (E33.3m) into the UK market, which is doing quite well for us and I think we’re going to put in more money, quite frankly, with Brexit and all the uncertainty and the collapse of the pound, it actually gives opportunity,” Aulock added. “Those United Kingdom hotel assets just got a whole lot cheaper in rands.”