A R240m transaction takes hotel out of business rescue

Pezula Hotel on South Africa's Garden Route has been taken out of business rescue following a complex transaction worth R240 million.

Specialist tourism advisor TPF Advisors, part of the Village n Life Group, recently consulted to a South African consortium on the acquisition of the luxury hotel, which consists of a commercial area of more than a 5 800m2 and 78 sectional title suites of nearly 6 499m2.

The consortium has appointed Village n Life as the new management company and has started investing in upgrading the hotel.

Hannes Swart, founding partner of TPF Advisors, says the Pezula Hotel transaction was "extremely complex" due to the large number of stakeholders who needed to be consulted.

"Following extensive negotiations with the owner of the hotel company, the owner of the hotel company, the owners of the commercial section, the owners of 78 sectional title suites, all creditors of the hotel and all the members of the body corporate, Pezula Hotel was successfully taken out of business rescue. The new owner is commmited to tourism growth in South Africa and believes the Garden Route has significant growth potential."