South African gaming and leisure group, Tsogo Sun, has forked out a substantial R1.6 billion to upgrade one of its properties sitting in Durban, Suncoast Casino and Entertainment World. The expansion and renovations for the casino took six months to September 2017. Read on for more.
Suncoast Casino Renovations
Included on Suncoast Casino’s R1.6 billion revamp was brand new furniture and fittings for the resort’s new 504-room SunSquare and StayEasy. Major hotel refurbishments and overall casino maintenance, including the casino floor and system replacement, came at a total cost of R438 million.
Jacques Booysen, the new CEO for the group said the investment made at Suncoast hotel and casino, all with other property acquisitions, would do the company good in terms of bringing significant returns in the future.
Recently, the group reported a 1% increase in total income to R6.4 billion. Tsogo Sun also saw decline of 10% to 78.8 a share in adjusted headline earnings. When compared to 2016, the group went down from 88c. “The acquisition of additional hotel properties by International Hotel Properties, which currently owns nine hotels in the UK, is anticipated in the future, and the group may apply additional capital in this regard,” said Booysen.
Tsogo Sun is eyeing in all areas to ensure it remains the best in class. According to reports, the group is hoping and waiting on Cape Town’s possible second casino. The government in the Western Cape has in the long run been debating on allowing one of four provincial casino licences to be transferred to the Cape Town metropole,. This is where Tsogo Sun’s rival Sun International’s GrandWest casino is located.