from DION HENRICK in Cape Town
Western Cape Bureau
CAPE TOWN, (CAJ News) – SPEAR REIT, the investor in real estate within the Western Cape, is buoyed by the recovery of the tourism sector as it targets further growth in 2023.
The company’s links in the hospitality sector is through 15 on Orange, a fixed income triple net lease with The Capital Hotels and Apartment Group.
Spear has zero exposure to hotel operations, repairs and maintenance, fixtures, fittings and equipment replacement at the hotel.
However, the investor, which has released its trading update for the first quarter of 2022, stated that positive occupancy rate growth coming out of the pandemic trading environment had been reported along with positive trading across all revenue centres for the hotel operator.
“Generally, Cape Town has been busier with business travel and international travel rebounding strongly together with a sooner than expected recovery in the meetings, incentives, conferences and exhibitions sector,” Spear stated.
Capital 15 On Orange Hotel is set within Cape Town’s historical Company’s Garden, anchored by Table Mountain and Lion’s Head.
Meanwhile, based on Spear’s operational and financial performance year-to-date, it remains on track to achieve management’s guidance set out to the market for Full Year 2023.
Management’s guidance remains growth of 5 percent to 7 percent.
The guidance is based on some factors including no further COVID-19-related lockdowns and the reduction in load shedding.
– CAJ News