Turning the tables
Hotel, gaming and leisure company Peermont is poised for international expansion, with plans to take a major share in the casinos of Mauritius. Gay Sutton looks at the companyÔÇÖs ambitious programme of expansion and improvement.
Based in Bryanston, Johannesburg, Peermont is one of South AfricaÔÇÖs leading hospitality and gaming companies, owning and managing a wide portfolio of hotels, casinos, convention centres, retail outlets, restaurants and bars, along with other sporting and entertainment facilities. In spite of the tough economic environment, Peermont has continued with an ambitious programme of expansion and development, not only upgrading and adding to its current leisure and gaming properties, but also looking to expand its portfolio offshore.
The company currently owns and manages a total of 14 propertiesÔÇönine in South Africa and five in BotswanaÔÇöwhich equates to 1,592 hotel rooms, 3,229 slot machines and 141 gaming tables. However, with ongoing investment across the group, this tally is continuing to grow.
The companyÔÇÖs flagship property is Emperors Palace, a hotel, casino and convention resort in Johannesburg. Located at the O.R. Tambo International AirportÔÇöknown as the gateway to South AfricaÔÇöthe resort is ideally located to attract business visitors and tourists. It has been undergoing expansion and development in readiness for the expected influx of visitors for the 2010 World Cup, and to take advantage of the increase in tourism to South Africa.
Over the last two years, R180 million has been invested in hotel facilities alone at the resort. The 196 room, five-star DÔÇÖoreale Grande hotel has been upgraded to provide the very best in luxury and service; the 80 room Peermont Metcourt hotel Suites have been upgraded and rebranded; while a completely new 248 room Peermont Metcourt hotel has been opened.
A further R94 million has been spent on redeveloping the entertainment Emporium at Emperors Palace and creating what the company believes are the best dining and entertainment facilities in Africa, not only complementing the hotel, gaming and convention businesses at the resort but also upgrading the services for families.
One of the highlights of the newly refurbished Emporium is a state-of-the-art movie theatre by Nu Metro. This will house six all-digital theatres, including one of the largest cinemas on the continent, seating over 500 people, as well as a permanent 3-D cinema.
The EmporiumÔÇÖs restaurants have been completely redeveloped and expanded, and now include a larger Tribes, the traditional Greek tavern Platia, the Portuguese eatery Braza, Taste of Mumbai, Fu Li Hua, ColÔÇÖCachio Pizzeria, Ocean Basket and The Gold Rush Spur. To cater for families, a Jupiters childcare facility has been upgraded, offering a safe, secure and stimulating environment for younger children which is managed by a qualified childcare expert. Finally, a number of new additions to the Emporium are a News Caf├® cocktail bar, a Sportsville sports bar, a 64 at the Palace entertainment venue, a Betting World, which offers extensive betting facilities and a Magic Company amusement centre for teenagers of all ages.
South AfricaÔÇÖs oldest casino resort and hotel, the Tusk Mmabatho near Mafikeng, has been part of the Peermont portfolio since 2006. This resort has also undergone an extensive R20 million makeover and was relaunched in June 2009 as the Mmabatho Palms. The refurbishment included a complete upgrade to all the public areas of the resort. The 150 room four-star Peermont Walmont hotel, for example, has been upgraded and rebranded. The casinoÔÇöthe heart of the resortÔÇöhas been completely refurbished while a new conferencing facility, the Bogosing Room, has also been added. To complete the upgrades, the Motswedi Terrace Restaurant and Bar has also been revamped.
At PeermontÔÇÖs Rio Hotel, Casino and Convention Resort in Klerksdorp, R73.5 million has been invested in a new Peermont Metcourt hotel. The development includes a convention centre, 66 rooms, four suites, a pool, a landscaped terraced garden and a buffet style restaurant. The Peermont Metcourt is a three-star hotel chain that is chic and affordable;┬á and the new Rio and Emperors Palace hotels are uniquely designed to combine comfortable and affordable accommodation with innovation and style, while conforming to strict environmental standards of energy efficiency and sustainability. ÔÇ£We emphasise elements that make travel enjoyable and easier for our guests, whilst eliminating unnecessary frills through superior designs,ÔÇØ explains CEO Anthony Puttergill.
Environmental sustainability is very important to Peermont. The company has, for example, been monitoring its energy consumption closely for a number of years. A pilot feasibility study for solar power generation just two years ago resulted in the conclusion that solar power was too expensive; however, since that time, solar technology has improved significantly, while the South African power generation company Eskom has proposed raising the cost of electricity. Peermont is therefore tracking the prices, and will consider a move to solar power generation when the costs become less prohibitive.
Meanwhile, wherever possible, heat pumps are being retrofitted as replacements for traditional boilers, to reduce company-wide carbon emissions. Additional measures which have been implemented include LED lighting which has been installed at all units, with a steering committee overseeing the project. A grey water treatment plant has been installed at the Peermont Grand Palm resort in Botswana, which has now been running for three years and is proving very successfulÔÇöresulting in 100 per cent of the resortÔÇÖs water being recycled, including all water supplies to the adjacent accommodation blocks. All irrigation for this resort is fed from the grey water treatment plant.
Another measure currently in place at the Peermont Grand Palm resort is a worm farm, which has been in place for the past six to nine months and is proving to be a successful project with great benefits. As such, this is now a project which is being considered for the Emperors Palace resort. Peermont received an award from Iskhus Power in 2008, ÔÇ£in recognition for their commitment to energy savings by installing energy efficient technologyÔÇØ at 10 sites.
Peermont is very positive about the future of its resort business in South Africa and Botswana. ÔÇ£Mindful of current global economic conditions, Peermont is confident in the future growth of tourism to South Africa from international business and leisure travellers,ÔÇØ explains CCO Mark Jakins. ÔÇ£This is reflected in our investment into infrastructure, customer service training and innovative new entertainment and hospitality facilities, which will stand us in good stead when the recovery occurs.ÔÇØ
Looking to the future, however, Peermont has big plans for expansion into Mauritius, where it is the preferred bidder for a 51 per cent share in the state-owned Casinos of Mauritius and 100 per cent share of the management company responsible for running the casinos. There are five casinos on the island, currently run as standalone gaming organisations.
ÔÇ£The Casinos of Mauritius opportunity is ideally suited to PeermontÔÇÖs expertise, profile and operating base,ÔÇØ Puttergill says. ÔÇ£We believe there is significant scope to expand and improve the existing operations. Our long-term vision is to develop these casinos into multifaceted entertainment destinations offering local guests and tourists alike a range of entertainment options including dining, bars, theatre, festivals and hotel accommodation.
ÔÇ£This acquisition, once concluded, will help us to further diversify our operations geographically and so reduce the extent of our reliance on our flagship Emperors Palace asset.ÔÇØ
