Tsogo Sun Holdings Ltd. is the largest gaming and hotel company in the whole of Africa. The company is looking to expand and upgrade its casinos in the South African market.
Marcel Von Aulock, the Chief Executive Officer at Tsogo Sun, has noted that while there is currently enough gambling space for the country's needs, some expansion will ultimately be profitable.
Tsogo Sun Looking to the Future
Amongst other expansion ideas, the Tsogo Sun has plans for a new Cape Town casino. The gaming company is considering moving its license from a smaller facility to a new and bigger casino. Tsogo Sun would like to move ahead with the relocation plan by the end of the year. It has been noted that the local authorities will need to amend some regulations before it can proceed with the move.
Von Aulock explained that while the economy is at a low point, it will change over time, and the gaming and hospitality company wants to be ready for the chance.
Marcel Von Aulock said: "We're at the tail end of the transformation of the portfolio. We've done all the work, so we are kind of waiting for the uptick to come."
Von Aulock noted that Tsogo Sun Holdings needs to "make sure we're in the right place, and make sure the product is good. At some point the economy will turn."
Tsogo Sun has recently completed upgrades to Gold Reef Casino, and Montecasino. The company has plans in place to upgrade and expand its Durban Casino, Suncoast. Land acquisitions and hotel refurbishments are also on the cards. Tsogo is also hoping to buy a controlling interest in the Hospitality Property Fund, which is listed in Johannesburg. The deal will go through if regulatory approval is granted.
More About Tsogo Sun Holdings
Tsogo Sun Holdings Ltd. earns the majority of its profits from gaming. The entertainment company earns approximately 60% of its revenue from gaming and about 30% from hotels.
Although the South African economy is very slow at this time, Tsogo managed to increase gaming profits by six percent when looking at the figures at the end of March 2016. Hotel revenues increased by nine percent. Ninety percent of the company's profits are from its interests in the South African market.