Johannesburg Stock Exchange listed leading hotels, gaming and entertainment company, Tsogo Sun will rebrand the Hotel Formula 1 chain of budget hotels under its own brand, SUN1, following the acquisition of the remaining 53 percent share of Hotel Formula 1 (Pty) Ltd from Accor in April 2012 by Tsogo Sun.
SUN1 Midrand is located at the Corner of K101 and Old Pretoria Road, 1km to the Midrand Gautrain Station and 2km to the Gallagher Estate Conference and Exhibition Centre.
According to Tsogo Sun chief executive officer Marcel von Aulock, post the acquisition, they evaluated the value of the brand in the budget sector of the market and concluded that a refresh under Tsogo Sun was required.
“Last year, we consolidated the group’s brands into one holistic identity under the sunburst and this logo will be applied to all 21 SUN1 hotels, making them instantly recognisable as part of the group,” he says.
He points out that the rebranding of Hotel Formula 1 to SUN1 cements the group’s position as leader in the market with a portfolio from budget to luxury hotels.
Sun1 Midrand
If you have always wanted to stay at a hotel but have been put off by the price, SUN1 Midrand is the budget hotel to book into.
Just because it’s a 1 Star doesn’t mean its poor quality, if anything, it gives you the basics, comfortable accommodation without costing you a fortune.
Yes, you will still watch television, parking is complimentary and there is of course free Wi-Fi so you can stay connected.
SUN1 Midrand is located at the Corner of K101 and Old Pretoria Road, 1km to the Midrand Gautrain Station and 2km to the Gallagher Estate Conference and Exhibition Centre.
According to Keith Randall, managing director of Hotel SUN1, this hotel property and 20 others are aimed at business and leisure travellers in the travel budget sector as they are conveniently located near airports or CBDs.
According to Keith Randall, managing director of Hotel SUN1, this hotel property and 20 others are aimed at business and leisure travellers in the travel budget sector as they are conveniently located near airports or CBDs.
This property offers 93 standard rooms with quality finishes, air conditioning, and uses LED lighting in keeping with the green theme and wanting to keep costs down.
It has been painted in warm colourful tones that are inviting, uplifting and comforting to complete any traveller’s experience.
Rooms can sleep one, two or three people and expect to pay R435 per night, plus add R40 for a light breakfast on the go.
Budget hotels in SA
The SUN1 brand offers 21 hotel properties across the country. In Gauteng there are hotels in Alberton, Benoni, Berea, Edenvale, O.R Tambo, Midrand, Pretoria, Southgate, Vereeniging and Wynberg.
There is a SUN1 in Bloemfontein, and Durban and Richards Bay in KwaZulu-Natal, while Mpumalanga has two in Nelspruit and Witbank, and there is one in Kimberly in the Northern Cape and one in Port Elizabeth in the Eastern Cape.
The Western Cape has properties in Beaufort West, Foreshore, Milnerton and Parow and all rooms have a television, working area, air-conditioning and eco-lighting system.
In total, the brand offers 1 530 rooms with room rates ranging from R419 to R449 and can sleep up to three people.
“The budget sector is one of the fastest growing in the world and it is our intention to grow our portfolio in this sector and we believe under the SUN1 brand, we are perfectly positioned to actively pursue new properties, “says Von Aulock.
According to Kamil Abdul-Karrim, managing director of Pam Golding Tourism & Hospitality Consulting (Pty) Ltd, less than five percent of South Africa’s total room inventory is at a budget level and the demand for budget accommodation outstrips supply.
A 4 bedroom house in Kyalami Gardens in Midrand is selling for R3.5 million through Seeff Sandton. Click here to view.
“This is reflected by the high occupancy levels that this sector of the industry operates at and the attraction of budget hotels, while being price driven, is based on the concept of a value for money no frills product – what you see is what you pay for,” he explains.
Abdul-Karrim says there has been limited growth through the hotel expansion explosion between 2008 and 2010 at the budget level, and Tsogo Sun being a pivotal player in this segment understands this, hence the new expansion drive.
Globally, he says the budget hotel sector has grown exponentially in the decade leading up to the global economic contagion, and is once again picking up momentum.
The demand for no frills quality accommodation has always been there but the availability at the correct quality level was questionable outside of the larger nationally or even globally distributed brands.
However, it will be important to note that what the hotel industry, especially in South Africa, has achieved is the development of a sustainable model, he points out.
Furthermore, he says the comment that there is an oversupply of 5 Star rooms in the country is not entirely true.
He says this was the case 18 months or more ago, but what Smith Travel Research currently reflects is that on an August year-to-date basis, RevPAR at the 5 Star level has grown by 16.8 percent, outstripping all other industry segments.
All rooms have a television, working area, air-conditioning and eco-lighting system.
The current Average Room Rate is essentially at its highest historical level at R1 678.00 and so, the assumption that there is a higher supply of 5 Star rooms than budget rooms will be entirely correct.
Buying and selling property in Midrand
Charles Vining, managing director of Seeff Sandton, says Midrand is popular among young professionals and young families - it an ultimate ‘starter area’.
He says secure estates in Kyalami and Waterfall, for example, are exclusive and popular with families and professionals alike and points out that the Gautrain has made a real impact in Midrand.
Sought-after areas in Midrand include Kyalami, Waterfall and Carlswald North Country Estate.
“Interestingly, these are all closed, secure estates and estate agents cite stock shortages in these areas,” according to Vining.
Because Midrand has varies suburbs, it is difficult to point to an average property price, but regular in an ‘open’ suburb (not gated community), a two bedroom, two bathroom sectional title apartment can be found at between R850 000 to R1.2 million while freehold homes with three bedrooms and two bathrooms are priced between R1.2 and R1.6 million, with entry level homes in secure estates costing about R3 million.
For those who cannot afford to buy, renting remains an option and buy-to-let investors would be happy to know that there is an increasing demand for rental properties and those that are 'priced right' always find tenants as they get better value for money than in Pretoria and Johannesburg, he adds. – Denise Mhlanga
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