Tsogo Sun sells Nigerian hotel

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South African casino group Tsogo Sun is in the process of selling a Nigerian hotel to a Mauritius-based company.

Tsogo is selling the Southern Sun Ikoyi to Kasada Albatross Holding, a subsidiary of Kasada Hospitality Fund, for $30.4m. A shares agreement has already taken place and the acquisition is at an advanced stage.

Tsogo Sun’s Marcel van Aulock is reported by Gaming for Africa to have said in a recent podcast that the sale of the hotel would bring Tsogo around R660m (€39.7m).

“Then we have done a deal with our sister company, Tsogo Sun Gaming. They want to take their own hotel management in-house, very much like the other casino groups do and we are going to get a new R250-plus million (€15m) out of that.

“So R900m (€54.1m) is very material for us. We started Covid with a debt balance of R3.1bn and there was a lot of worry at the time that because you are losing money you are just going to build up a debt balance that ends up so much that you cannot get out of it.”

Source: intergameonline.com