News
Tsogo Sun – South Africa’s largest casino operator – increases stake in hotel chain
![Tsogo Sun Gaming](https://www.joburgetc.com/wp-content/uploads/2023/05/Tsogo-Sun-Gaming.jpg)
South Africa’s leading casino operator, Tsogo Sun Gaming (TSGJ.J), has solidified its presence in the hospitality industry by increasing its stake in City Lodge (CLHJ.J) to 10%, making it the second-largest shareholder in the renowned hotel chain. As per Reuters, the move comes as Tsogo Sun executes its plan to re-enter the hotel business, which it had exited back in 2019. According to a statement released by Tsogo Sun on Thursday, the company has invested approximately 136 million rand ($7.43 million) through undisclosed subsidiaries to acquire the stake in City Lodge.
Also read: 20 of the Top Resorts in Gauteng
In response to Tsogo Sun’s increased interest, City Lodge issued a separate statement confirming that Entertainment Holdings and HSS Investments, collectively, have raised their combined stake in the company to 10.0%. This development marks a significant strategic move for Tsogo Sun, renowned for operating the sprawling entertainment hub and casino Montecasino in Johannesburg.
Also read: Iconic Carlton Centre Up for Sale Marking the End of an Era
Following its decision to divest from the hotel business in 2019, Tsogo Sun has allocated additional funds for the fiscal year ending in March 2024 to invest in the hospitality sector, facilitate dividend payments, and reduce debt. The news of Tsogo Sun’s increased stake in City Lodge had a mixed impact on the stock market, with Tsogo Sun shares on the Johannesburg Stock Exchange closing down 1.68%. In contrast, City Lodge shares experienced a positive surge, ending the day up by 5.27%—meanwhile, the broader index, represented by .JALSH closed with a gain of 0.73%.
As Tsogo Sun Gaming makes significant inroads into the hotel industry again, its investment in City Lodge highlights its commitment to diversifying its portfolio and expanding its presence in South Africa’s vibrant hospitality sector.
Also read:
Eastern Cape’s Baywest and Hemingways Malls for Sale Amid Financial Struggles
Picture: Twitter / Yokwe_Kwanele
Follow us on Google News.