Landmark hotel in Rosebank, The Grace Hotel may reopen next year

JSE-listed Hyprop Investments said on Wednesday it has received significant interest from local and international hotel operators to reopen The Grace Hotel, in Johannesburg, which will close its doors on August 31.

A depressed travel and tourism industry in South Africa resulted in the closure of the 13-year old iconic Rosebank hotel.
 
Hyprop Investments terminated its lease agreement, after African Sun Hotels, which operated the hotel, was unable to meet its obligations in light of the severe downturn in the hospitality industry.
 
Hyprop, which previously said it would assess its options in respect of the building and may consider alternative uses, added that all reasonable hotel management proposals would be considered.
 
“It is envisaged that should a successful deal be concluded, the hotel will most likely only reopen its doors in the first quarter of 2012,” Hyprop Investments said in a statement.
 
The Grace Hotel has suffered from both a reduction in overseas visitors and domestic travel, particularly from corporate business.

 African Sun has elected to withdraw from the five-star hotel industry in Johannesburg, which was likely to remain under pressure for the short to medium term.
 
“Low room rates and rising operating costs coupled with an oversupply of hotel rooms and the subsequent ‘rate war’ has added to the inability of the hotel to weather the downturn in the hospitality sector,” the company said.