Queensgate to oppose winding-up application

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Categories : Travel news

The troubled Queensgate Hotels and Leisure group, which has interests in a number of Western Cape hotels, will oppose an application for the provisional liquidation of the business in the Western Cape High Court on Friday.

The application is scheduled to be made by Salvobyte (Pty) Limited over an alleged debt of R210 081. The board of Queensgate has confirmed it will oppose the application.

The board, from which founders Andrew Hubbard and Holger Friedrichsen resigned this month, has advised shareholders to exercise caution in the trading of Queensgate shares on the JSE until a further announcement is made.

The Queensgate share price has collapsed but the hotels in which Queensgate has interests are managed by Three Cities and continue to trade in what is a depressed market.

The Western Cape hotel industry has been hit hard by an over-supply of rooms in recession conditions. This has been exacerbated by the opening of a number of brand new luxury hotels in recent months which sees hoteliers competing for leisure and business travellers who are not moving around in the expected numbers.

Although it should still be peak season for overseas tourists in the Western Cape, international flights into Cape Town are not as full as they were two years ago.

In a further dent to confidence, at least three Western Cape hotels will came under the hammer at public auctions this week.

The Cape Castle Hotel in Green Point, which is within easy walking distance of both the V&A Waterfront and the Cape Town Stadium, is the biggest of the hotels with more than 60 rooms in a 14-storey building. The others are La Splendida on the Mouille Point seafront and Harbour House in Hermanus.

Each will come under the Auction Alliance hammer on Thursday at noon at the Crystal Towers Hotel and Spa, Century City.

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