O&L brings five-star hotels to Namibia

IN a bid to grow the business in an international style and bring a slice of globalisation to Namibia, the country’s biggest home-grown company, the Ohlthaver & List Group of Companies, has joined with IFA Hotels & Resorts (IFA HR) in a N$550 million venture.

The 50-50 partnership with the internationally renowned IFA HR will culminate in a new company which has introduced five-star luxury hospitality partner Kempinski Hotels to Namibia in an agreement which will facilitate building of an initial four joint-venture hotel properties across the country. IFA HR is a subsidiary of Kuwaiti-based International Financial Advisers.The global company IFA HR is listed on the Kuwait Stock Exchange, with a market capitalisation of US$2 billion (around N$14,6 billion).The announcement of the new venture was made on Tuesday by the companies’ executives at a press conference held at Zimbali Coastal Resort in KwaZulu-Natal, South Africa, where O&L Executive Chairman, Sven Thieme, IFA HR executives Werner Burger and Wessel Witthuhn, and Ulrich Eckhardt of Kempinski signed the agreement.The signing was the result of a Memorandum of Understanding adopted between the parties last year, which set the partnership in motion.The new deal will see three hotels currently operating under the Namib Sun Portfolio (a subsidiary of O&L) being re-branded and reconstructed as five-star hotels.A new one will be established in Windhoek under the initiative.The three targeted for this overhaul are the Strand Hotel in Swakopmund, King’s Den Lodge along the Chobe River in the Caprivi Region and Mokuti Lodge, situated at the gateway to Etosha Park.The fourth establishment is another five-star hotel earmarked for the Windhoek city centre and construction is scheduled to start in July.The hotels – still to be named – will be operated under the Kempinski brand.This move will see thousands of jobs created for Namibians, and the new company – yet to be given a name – is expected to finalise the projects by 2010; the year South Africa hosts the World Soccer Cup, one of the world’s top sporting events.Explaining the move, Thieme said: “The entry of these two high-profile companies to Namibia will not only help increase our profile on the global travel and tourism stage, but also contribute to business growth that significantly supports our socio-economic wealth and living conditions.”I am very excited and proud to see these prestigious companies enter Namibia.”Thieme added that it was also vital that his company joined with a financially solid and international partner in order to yield the desired results.He said these would be the first four projects of many more to come, to be carried out by the joint association.”One has to have a profitable business to make big moves,” said Thieme.Werner Burger, President and Chief Operations Officer of IFA HR, said since investing in South Africa in 2002, the company was looking at doing the same in Namibia through bringing in a premium product.IFA HR is engaged in the development of world-class hotel and tourism resort projects in South Africa, Kenya, Europe, the Middle East, the Indian Ocean region and the Far East.IFA HR, under JSE-listed IFA SA, has a 50 per cent stake in the multi-million rand Zimbali Coastal Resort development on the Kwazulu-Natal north coast which offers hotels, luxury homes, golf courses and leisure facilities.The company also has business alliances with Moreland Developments of South Africa, Kingdom Hotel Investment Group (Saudi Arabia), Nakheel (UAE), United Investments Portugal and Savills (UK).Ulrich Eckhardt, Kempinski Hotels’ Senior Vice President for the Middle East and Africa, added that he was delighted that his company’s relationship with IFA HR has led to an opportunity of establishing itself in Namibia.”Namibia has traditionally attracted a strong contingent of German visitors, as well as tourists from other key European markets where Kempinski is already well established,” he said.IFA HR is a subsidiary of Kuwaiti-based International Financial Advisers.The global company IFA HR is listed on the Kuwait Stock Exchange, with a market capitalisation of US$2 billion (around N$14,6 billion).The announcement of the new venture was made on Tuesday by the companies’ executives at a press conference held at Zimbali Coastal Resort in KwaZulu-Natal, South Africa, where O&L Executive Chairman, Sven Thieme, IFA HR executives Werner Burger and Wessel Witthuhn, and Ulrich Eckhardt of Kempinski signed the agreement.The signing was the result of a Memorandum of Understanding adopted between the parties last year, which set the partnership in motion.The new deal will see three hotels currently operating under the Namib Sun Portfolio (a subsidiary of O&L) being re-branded and reconstructed as five-star hotels.A new one will be established in Windhoek under the initiative.The three targeted for this overhaul are the Strand Hotel in Swakopmund, King’s Den Lodge along the Chobe River in the Caprivi Region and Mokuti Lodge, situated at the gateway to Etosha Park.The fourth establishment is another five-star hotel earmarked for the Windhoek city centre and construction is scheduled to start in July.The hotels – still to be named – will be operated under the Kempinski brand.This move will see thousands of jobs created for Namibians, and the new company – yet to be given a name – is expected to finalise the projects by 2010; the year South Africa hosts the World Soccer Cup, one of the world’s top sporting events.Explaining the move, Thieme said: “The entry of these two high-profile companies to Namibia will not only help increase our profile on the global travel and tourism stage, but also contribute to business growth that significantly supports our socio-economic wealth and living conditions.”I am very excited and proud to see these prestigious companies enter Namibia.”Thieme added that it was also vital that his company joined with a financially solid and international partner in order to yield the desired results.He said these would be the first four projects of many more to come, to be carried out by the joint association.”One has to have a profitable business to make big moves,” said Thieme.Werner Burger, President and Chief Operations Officer of IFA HR, said since investing in South Africa in 2002, the company was looking at doing the same in Namibia through bringing in a premium product.IFA HR is engaged in the development of world-class hotel and tourism resort projects in South Africa, Kenya, Europe, the Middle East, the Indian Ocean region and the Far East.IFA HR, under JSE-listed IFA SA, has a 50 per cent stake in the multi-million rand Zimbali Coastal Resort development on the Kwazulu-Natal north coast which offers hotels, luxury homes, golf courses and leisure facilities.The company also has business alliances with Moreland Developments of South Africa, Kingdom Hotel Investment Group (Saudi Arabia), Nakheel (UAE), United Investments Portugal and Savills (UK).Ulrich Eckhardt, Kempinski Hotels’ Senior Vice President for the Middle East and Africa, added that he was delighted that his company’s relationship with IFA HR has led to an opportunity of establishing itself in Namibia.”Namibia has traditionally attracted a strong contingent of German visitors, as well as tourists from other key European markets where Kempinski is already well established,” he said.