The 52-room Malaga Hotel in the foothills of the Drakensburg Mountains is going on auction later this month.
Offering a well-priced investment opportunity in the hospitality industry, the fully equipped, fully functional three-star hotel boasts a spa, conference facilities and a variety of outdoor activities. It is located on the banks of the Elands River and close to the historic towns of Waterval Onder and Waterval Boven.
“The sale of this property is an opportunity for the right entrepreneur in the hospitality industry, which has seen value created by the Covid-19 pandemic,” said Marc Kessel, senior broker at Broll Auctions and Sales. “We are seeing new entrants into various industries, including hotel groups and investment consortiums, who are looking to take advantage of the value on offer.”
South Africa’s current record low interest rates combined with investors that have accumulated capital in anticipation of distressed hotels coming to market, may result in hotels selling for better pricing than expected, Kessel said.
“In recent months, the number of properties coming to market have increased as sellers become more realistic in their pricing. Transactions are reflecting slight discounts but the pricing gap between buyers expecting discounts and sellers willing to offer such, appears to be closing.”
Sold as a going concern on 32 hectares of land, Kessel said the Malaga Hotel was a “rare gem offering incredible value for the right buyer”.
The Malaga Hotel will be one of the properties auctioned at 12:00pm on the 29th of July 2021 at Johannesburg’s Inanda Club.