Hotel, gaming and entertainment group Tsogo Sun Holdings is eyeing to be at the center of South Africa’s economic rebound. The strategy: Add more square meters and betting machines to its casino venues around the continent.
In an interview with Bloomberg, CEO Marcel Von Aulock said the company has already finished transforming its portfolio, and all that’s left now if “waiting for the uptick to come.”
The Johannesburg-based company, which gets about 65 percent of its profit from gaming, has already completed upgrading two of its four largest casinos, and is investing ZAR2 billion (USD139 million to expand its Suncoast gaming and entertainment site in the coastal city of Durban.
Despite the economic challenges South Africa is currently facing—its economy is forecast to grow at its slowest pace since the 2009 recession—Tsogo’s gaming wins rose by 6 percent in the year until March, while revenue at its hotels grew by as much as 9 percent due to “a stronger-than-expected fourth quarter.”