Protea Hotels Empowerment Consortium, a new joint venture partner with Protea Hospitality Corporation, has been successful in securing the contract from the University of Cape Town to manage the Breakwater Lodge and the Breakwater Campus (which houses the University’s Graduate School of Business). This is a four-year management contract, which sees Protea Hotels operating a Cape Town Waterfront hotel for the first time.
Protea Hotels Empowerment Consortium is owned by Protea Hospitality Corporation, Basebenzi Investments, POPCRU Investments Holdings, Siphumelele Investments, Hoyohoyo Trust and Prime Portfolio Investment `A`. The structure of the consortium is effectively 68.5% black owned. Protea Hospitality Corporation, which recently concluded one of the first black economic empowerment deals in the hospitality industry, views the new contract as a further step in achieving true economic empowerment in the hospitality industry.
“In line with government policy it is imperative that the hotel industry transform itself in line with the demographics of this country.” said Otto Stehlik, Executive Chairman of Protea Hospitality Corporation. “This industry has a great future, and the benefits of ownership must flow through to the wider population. To this end we have set ambitious employment equity targets for management and staff of the Breakwater Lodge, to be achieved within four years.”
The primary purpose of the hotel is to service the needs of the Graduate School of Business. Under the management of Ms Peggy Klement, who will continue as general manager, the hotel has been operating at around 80% room occupancy for several years.