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  • Chidozie Uzoezie

BON Hotels CEO Calls for Hotel Management Consolidation


“There’s not enough room at the Inn.” That’s according to Guy Stehlik, CEO of South African-based hotel management company BON Hotels.

Speaking at the recent THINC Africa Hotel Investment Conference in Cape Town, Stehlik said that there are approximately 78 hotel management groups In Southern Africa operating approximately 984 Hotels & Lodges. “Of the 78 companies, only 12 have a footprint of 8 or more hotels. To make matters worse, the 4 largest operators, City Lodge, Marriott, Tsogo and Sun International operate just over half the 984 properties themselves.”

South Africa’s local hotel industry has become threatened over the last decade with the entry of international players. As we see more international groups vying for position on SA turf, buying business, offering cash injections, discounted fees and shorter-term agreements, Stehlik believes that local hotel management companies are under siege.

“International hotel groups are buying out local groups through mergers and acquisitions. Local operators are all fighting for a diminishing share of management contracts, franchise agreements, representation agreements, and new hotel projects.

Stehlik’s solution is for companies to set their egos aside and consolidate: “Imagine if just 30 of the 78 Hotel Groups joined forces into an alliance partnership and consolidated into one powerful hotel management company, similar to what travel consortia got right many years ago.” He believes that consolidation would improve buying power, BBBEE status, spending power, increase footprint and offer more diversity of product.

International hotel groups have strong ambitions of growing their South African and African portfolios and consolidation would mean that a local operator could not only be a stronger contender but, more importantly, be supporting our own country: buying local, growing local, employing local, supporting local and facilitating the transformation vision.

“We need to save our local industry and stand together, merging our companies, our expertise and especially our local advantage, forming a strong South African brand once again. We can only take back our industry by becoming a part of this new ‘sharing economy’,” concluded Stehlik.

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Comments (25)

Vieras
21. syysk. 2022

We just booked our QATAR 🇶🇦 HÔTEL yesterday for 2 différent short stars of 2 nights and 3 nights for the Final… https://www.14sb.com/fifa-world-cup-hotels.html . Not exactly cheap but ok price for 4.5 Stars luxury and in Doha Center City! Thanks and Good Luck everyone! Vamos MEXICO!

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Vieras
30. syysk. 2022

Wow! Stunning! Hilton seems to be taking Africa by storm. Just a couple of years back, they opened the first ever in Eswatini.

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kasarokcaesar
24. lokak. 2022

Wonderful event and topics discussed, hopefully we see the manifestations in our African airline businesses in the nearest future. Kudos to you all.

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Vieras
10. marrask. 2022

Hi, I'm Lucy. Please how do I embark on my travel/ tour business. I am newbie and help..

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Vieras
18. marrask. 2022

Prices in the Sol Torremolinos Don Pablo are the same than two weeks ago.

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Vieras
04. jouluk. 2022

Good location astounding but the staffs are rude and they make me wait so long for the service. They charge me more than what is on the website and did not refund me the manager is not helping with the issue


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Vieras
15. jouluk. 2022

WoW. Amazing Review. 👍

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Vieras
07. tammik. 2023

I spent the holidays here, I don't know why but during the holidays their reception smells like a piss Id rather not spend my special occasions here

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Vieras
07. elok. 2023
Vastataan

Where is here.

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Vieras
27. tammik. 2023

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More Info : https://www.cleartrip.ae/flight-booking/ethiopian-air-airlines.html

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Vieras
27. helmik. 2023

I am really tempted to book the next ethiopian airlines ticket and relive your journey. The pictures shared with the post also reflect that you truly enjoyed the travel. Great post! I also like the fact that you have covered nuances about the food and entertainment service through the pictures. It helps people know what to expect on their travel by this airline.


More Info : https://www.cleartrip.ae/flight-booking/ethiopian-air-airlines.html


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