Legacy Hotels & Resorts

LEGACY HOTELS & RESORTS

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LEGACY HOTELS & RESORTS

Leaders In

Luxury Lifestyles PRODUCTION: Timothy Reeder

Over the last 20 years, the Legacy Group has created, some of the most exciting retail, commercial and hospitality developments on the African continent. Legacy Hotels & Resorts Chairman, Bart Dorrestein briefs us on some of the recent highlights for the group, including the ever-growing, all-star Leonardo development in Sandton.

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“The Legacy brand was established by individuals who were leaders in the property development, construction and hospitality industries,” says Dorrestein. “Their role was pivotal to the strong foundations on which the group’s success has been built.”

Established in 1999 after the delisting of Stocks Hotels and Resorts, and following a management buy-out to

change both ownership and name, the Legacy Hotel & Resorts portfolio has grown to include 27 hotels and resorts, some of which are owned and some of which are managed. “Legacy offers its clients, shareholders and partners the opportunity to invest in the skills and experience of its founders and the values they aspire to uphold” adds Dorrestein.

The various business units in the

Legacy Group all combine to deliver on the group’s values and objectives: Legacy Property Development assists Legacy and outside clients in ensuring that projects are completed on time, to specification and within budget.

Legacy Hotels & Resorts, operates a collection of four and five star hotels, bush lodges, leisure resorts and casino resorts in key tourism and business locations throughout Africa.

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INDUSTRY FOCUS: PROPERTY

The group operates a rewards programme which is central to its marketing strategy for all of its hotels and developments. The programme, under the Legacy Lifestyle brand has 870,000 members and provides the ability to earn and redeem cash-back rewards at 270+ retailers, including well known brands such as The Cross Trainer, Pringle, Lorna Jane, Dis-Chem and of course at all Legacy Hotels & Resorts.

Another Legacy Group company, Magic Breakaways is a founder-member of RCI and the developer of eight of South Africa’s Golden Crown timeshare resorts.

INDUSTRY ICONS Even in its infancy, Legacy was always considered a true pioneer in luxury lifestyle projects on the continent, Dorrestein explains. “The founders of the Legacy Group were involved in

many of South Africa’s iconic hospitality developments,” he reveals, “including Sun City, The Palace of the Lost City as contractors, and Nelson Mandela Square, which was developed in the early 1990s.

“The Michelangelo Towers is a development of some 40,000m² with 194 luxury apartments that has set the standard in the mixed-use market segment,” says Dorrestein. He adds: “The DAVINCI Hotel & Suites was an expansion on the concept of mixed-use developments, and was finished just in time to play host to many of the teams and VIPs participating in the 2010 FIFA World Cup.” The DAVINCI is Legacy’s fourth site on the cosmopolitan square, in the very centre of the Sandton business and leisure district.

“A new approach, to address changing market conditions in South

Africa, was necessary post 1995” says Dorrestein. “Pre-1995, building and development costs in SA still allowed a single developer or investor to venture into the luxury hotel market, with expectations of Returns On Investment (ROIs) that would outperform the market,” Dorrestein outlines. “However, this changed rapidly post-1995 and new avenues of raising enough capital to develop iconic hotels were needed.

This was one of the main contributors to the idea of mixed-use developments, together with the security concerns in SA at the time.

“The company’s focus on hospitality started with the development of Kwa Maritane in the Pilanesberg, which was one of its first projects. Ultimately, the development of Sandton Square, now Nelson Mandela Square, together with the iconic 5-Star Michelangelo

Thermaire Investments would like to congratulate the Legacy Group on their new development.

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The support of Samsung on their VRV Equipment has been invaluable, and we wish all involved success in the future.

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E D L O L S O T N A H W EC T

LEGACY HOTELS & RESORTS

Hotel in the early days remain two benchmarks in the group’s history.” At the heart of business in Africa’s richest square mile, the Michelangelo Hotel which Dorrestein mentions as a seminal property, epitomises the very essence of class, elegance and sophistication.

Dorrestein goes on to speak of how integral expanding the concept of mixed-use developments has been to Legacy’s world class portfolio, often blending residential, commercial, cultural, institutional, or entertainment uses, where those functions are physically and functionally integrated.

“The idea of living, working and playing in the same estate and/or building made the concept very attractive.”

It is an idea that remains central to Legacy’s ambitions moving forward.

“Legacy’s vision is to manage four and five star properties throughout Africa,” says Dorrestein, “either through the development of new mixed-use developments or the refurbishment of existing hotels; those which include the addition of elements that make the ‘live, work and play’ philosophy a reality.

The factors that have seen this trend grow and become successful in SA are often the same as experienced in other countries in Africa.”

STRONG PARTNERSHIPS This drive by Legacy to propel its hotel offering to even greater heights

has been bolstered by collaborations with other key market players, and has allowed Legacy to strengthen its presence in new territories. “We have to make wise decisions regarding which

projects we take on, and how they are funded,” Dorrestein notes. “We strongly believe in the future of South Africa and the African continent. Hotels are fixed assets, so once the investment has been

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INDUSTRY FOCUS: PROPERTY

// WE BELIEVE THAT THE LEONARDO WILL BE THE MOST TECHNOLOGICALLY ADVANCED, ENVIRONMENTALLY FRIENDLY BUILDING ON THE CONTINENT // made, we have to work really hard to make sure that the service levels and customer experience that we deliver is consistently exceptional.”

This belief, and the confidence Legacy has in what the continent still has to offer, has led it to take up residency in new and potentially very lucrative climes, Dorrestein delineates. “Legacy has been present in Namibia for some time with the Windhoek Country Club & Resort and the Swakopmund Hotel & Entertainment Centre, and for many years we managed The Wheatbaker in Lagos, which was consistently voted the leading hotel in Nigeria, as is Labadi Beach Hotel in Accra. Since 2016, Legacy has managed five hotels in Zimbabwe, on behalf of African Sun, including two at Victoria Falls. By taking on the management of the five hotels, we are able to play a central role in supporting the development of tourism in Zimbabwe. And, we have interacted very constructively with the Government about the future of tourism in the country. We are convinced that Zimbabwe is on the road to recovery.

Whilst rebuilding confidence in any market takes time, we believe all the ingredients are in place to fast track this process.” Dorrestein told SATOA. Legacy’s international marketing team have recently travelled to Zimbabwe to experience first-hand what the country has to offer, and they are now promoting the destination in the United States, Europe and Asia.

To support the expansion strategy which Legacy’s Hotel & Resorts division continues to demonstrate, it has had to harness the best technology available.

Legacy has partnered with Sabre Hospitality Solutions to introduce a new distribution platform that provide

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its properties in South Africa, Ghana, Zimbabwe, and Namibia with the ability to market rooms to travel agents and tour operators globally. Legacy Hotels & Resorts will leverage the proven and reliable solutions Sabre has crafted to help it to compete in a marketplace where technology is a critical business enablement tool.

“We were looking for a technology partner with the powerful solutions we need to foster growth across our properties combined with global connectivity in the hospitality arena and the expertise, service and reliability of an international provider,” Systems Development Manager of Legacy Hotels & Resorts, Andrew Wytrykowski said of the partnership.

JEWEL IN THE SANDTON CROWN It should come as no surprise that, with a history replete with groundbreaking examples, the next Legacy milestone project is set to be another revolutionary mixed-use development, at the heart of Africa’s financial hub consisting of luxury apartments, suites, penthouses, offices, a conference centre, an expansive outdoor entertainment area, bars and a creche. “The Leonardo promises to become Africa’s benchmark mixed use development,” states Dorrestein, “offering a complete lifestyle in one location.

“There will be some 10,000m² of offices and plans are under

consideration, subject to market demand, to develop a luxury six star hotel.” The already world-famous Sandton skyline is now dominated by its new star attraction, and the unmissable rise of the luxury Leonardo development has been a sight to behold for tourists, travellers and residents since construction began. As it continues to steadily gain in height, the Leonardo has dwarfed its neighbouring skyscrapers and now even stands proudly above the former stand-out, Legacy’s own Michelangelo Towers.

“The estimated value of the development is close to the R3bn mark,” Dorrestein tells us, when asked to provide some exclusive insight into the inner workings of this project. “The development commenced on a phased basis with 33 floors, with expansion linked to market demand. The market’s response has been phenomenal, and we are now developing the building to its full potential at 55 floors, reaching 240m into the sky. As it stands around 85% of the residential apartments have been sold, 80% of the office space is accounted for and the bulk of the retail sections have been let,” he says.

“The building will eventually consist of 270 luxury residential apartments, eight high-end penthouses and the Leonardo Suite, which will take up the top three floors and is expected to have a selling price of $22million.”

Even if it is not in the penthouse, those who settle here will be at the centre of a brand-new precinct set to be a massive boost to what is already South Africa’s premier business node. “The office space from floors nine to 15 is around 6,000m²,” Dorrestein continues.

// THE LEONARDO EPITOMISES THE IDEAL OF A MIXED-USE DEVELOPMENT – A MEANS TO LIVEWORK-PLAY IN THE LAP OF LUXURY, WITH EVERY CREATURE COMFORT AND CONVENIENCE AT YOUR FINGERTIPS //

INDUSTRY FOCUS: PROPERTY

“All tenants and owners in the building will have secure parking and access in and out via state-of-the-art technology that includes using one’s mobile device as your apartment key. Much of the building’s infrastructure has been designed around the Internet of Things, so owners and tenants can be sure that they will have access to the best technology possible, when it comes to managing how they interact with their apartments and offices.”

The entertainment and hospitality area of the development will include an extensive meal and bar offering, a luxury spa and gym, and a creche, with a magnificent pool and gardens, while

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the view from this area takes in the Magaliesburg and is set to become one of Sandton’s favourite spots to watch the magnificent sunset.

When questioned about the date for the opening of the Leonardo, Dorrestein says: “We have introduced a number of new innovations to the building which have moved the opening date out, but we are confident that we will open in mid-2019.”

PRIME REAL ESTATE The Leonardo is not only breathing new life into the famed Sandton horizon, but also generating a lot of talk among investors in the

financial capital of Africa. Its location is enormously beneficial, nestled as it is at the heart of the vibrant and rapidly expanding precinct of Sandton, adjacent to the Johannesburg Stock Exchange (JSE) and within walking distance of the Gautrain and all major businesses. This prime location represents the best of an as-yet unequalled South African lifestyle.

“The Leonardo epitomises the ideal of a mixed-use development – a means to live-work-play in the lap of luxury, with every creature comfort and convenience at your fingertips a simple lift ride away,” commented Gijs Foden, Legacy Living Director of Sales. “For

LEGACY HOTELS & RESORTS

residents this means a secure, luxurious living space, full concierge service, a crèche, a rooftop garden restaurant, coffee shop, heated pool, gyms and manicured gardens, and possibly even a commute to work that involves taking the lift a few floors down.

“We believe that The Leonardo will be the most technologically advanced, environmentally friendly

// I HAVE NO DOUBT THAT INVESTORS WILL VIEW THE LEONARDO IN THE SAME LIGHT AS OUR OTHER HIGHLY SUCCESSFUL PROPERTIES //

building on the continent. Demand is strong, and as we begin selling the higher floors, I expect the capital values of the properties will skyrocket, as was our experience with The Michelangelo Towers and the DAVINCI. I have no doubt that investors will view the Leonardo in the same light as these highly successful properties, namely a dollar safe investment that protects their Rands in a world class development,” added Foden It is natural that the Leonardo is the company’s main focus for the timebeing, but as Dorrestein concludes, Legacy has its sights set on much more to enhance the group’s offering as the leading provider of African lifestyle properties and development.

“We are in the process of completing a number of villas, sold on a whole or fractional ownership basis, in the

Pilanesberg area, adjoining Bakubung game lodge, a Legacy hotel and timeshare development. The iconic Elephant Point that shares a border with the Kruger National Park, is located on the banks of the Sabie River, is also a current luxury project under development.

“The refurbishment of many of our products remain a focus and the Michelangelo Towers, the Michelangelo Hotel and the Commodore Hotel in Cape Town are all currently undergoing upgrades and make-overs. We are also looking to expand further into Africa supported by the market’s appreciation of the products we offer and the business ethos of the Legacy family.”

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ENTERPRISE AFRICA

NOVEMBER 2018