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- Hotel Sky denies it's actively selling its hotels in Cape Town and Johannesburg, which cost R1.9 billion to build and sports self-playing pianos and talking robots.
- This is despite an alleged sales pack obtained by News24 that indicates their immediate availability.
- The group says the presentation may be old, and while it's not actively hunting for a buyer, it's open to offers for its two hotels.
- For more financial news, go to the News24 Business front page.
Hotel Sky denies it's looking to sell its hotels in Johannesburg and Cape Town - despite News24 having had sight of a sales presentation for both properties that appears to have been distributed around March this year.
Commercial property broker Ashleigh Müller claimed via her popular property-related Twitter account that the two properties were for sale, sparking a reaction from her followers and the hotel. The two posts received over 100 000 impressions each before Müller tweeted that a lawyer's letter instructed her to remove them.
The two hotels, which have 993 rooms between them, are both converted office blocks in prime locations. They required extensive investments to convert into hotels, with amenities that included pools, bars, restaurants, and a nightclub.
According to the developers, the Hotel Sky Cape Town cost R1 billion to build, and Hotel Sky Sandton R900 million. According to reports at the time, the Johannesburg property spent R28 million on technology alone.
The Johannesburg hotel opened in late 2020, and Cape Town followed several months later. Both attracted extensive press and attention, focusing primarily on their dramatic "African chic" decor, a tech-heavy approach, and their unlikely timing given the Covid-19 pandemic decimating the tourism industry at the time.
The Cape Town property, in the city's foreshore precinct, has giant crystal chandeliers, gold-tiled walls, and a self-playing grand piano. A rooftop ride that lights up red at night and stands out among the foreshore skyline is a widely promoted addition.
The Sandton property claims "state-of-the-art conference venues, restaurants, bars and other facilities".
And both market robot concierges to assist with check-ins and other tasks, including Covid-19-safe room service during the pandemic.
Although Müller deleted the original tweets and declined to comment further on the matter, News24 has seen an alleged sales presentation for the two properties that suggest Hotel Sky is looking for a buyer.
Paul Kelley, managing director of Richland Properties, which owns Hotel Sky, denies that the sales presentation indicates that they are actively seeking a sale - despite the document listing them as "for sale" and available immediately.
Kelley told News24 Business his "biggest concern is for staff and for consumer confidence" and that the sales pack is from a previous discussion. Sales forecasts on the document indicate a start date of March 2023.
Staying at Hotel Sky in Cape Town for a drone workshop this week?? pic.twitter.com/77HaWA8050
— Nic | Nth Studios (@I_am_the_nth) November 27, 2022
The pack contains comprehensive information about the two properties advertised as available "immediately" - at a price available on request.
"We have been approached by various people, and we have shared information with those people. If someone approaches a business and there is a potential investment, or there is an offer which is good, of course, we will consider it and have a look," he says.
Kelley says the social media post sent out this week caused significant strife among the hotel's employees and prospective guests - some of whom have contacted the properties to request refunds ahead of trips.
"The turmoil, anxiety, and stress this has caused for employees is totally unacceptable and out of line. The responsible thing to do from a business owner's perspective is to look after your people and your staff. And if something were to come up, of course, we would discuss it with our staff and all our stakeholders. But for an individual to make commentary like they have is very irresponsible and certainly doesn't bode well for the economy," says Kelley.
