Tsogo Sun has reached agreement with the owners of the site of the recently demolished Tulip hotel for the construction of an exciting new 500-bedroom hotel.

The new hotel complex will be located in Cape Town city centre on the corner of Buitengracht and Strand Street, for a total investment of R680 million.

The new hotel will consist of two products in one complex, a 200-bedroom latest-design SunSquare hotel and a 300-bedroom new generation StayEasy hotel, offering a choice of affordable and stylish accommodation.

Included in the complex will be banqueting and conference facilities, Tsogo Sun’s trendy and fast growing casual dining offering Vigour & Verve, retail space and approximately 300 underground parking bays. The hotel site currently includes a heritage façade which will be retained.

Construction is expected to begin in May 2015 and to be completed by September 2017, in time for peak summer tourist season.