FOR IMMEDIATE RELEASE
New hostel brand enters Cape Town in partnership with major private equity fund.
The Hotel Graeme on Main Road, Greenpoint has been sold to private equity fund, Fairtree Capital. The property underwent refurbishment and opened in November 2014 as a design hostel operated by never@home international hostels.
Gareth Davey, Managing Director of never@home commented “young people today are travelling more often, exploring more destinations and spending more money than any other tourist group. I managed one of the largest hostels in Sydney, Australia and I see real parallels between the growth of youth travel in Australasia during the 1990s and the current opportunity in South Africa. To date, Southern Africa is a relatively unexplored destination for young travelers. We see this changing considerably over the next decade and are investing in a brand that we expect to see grow across Southern Africa. Each property will be local in design and will have a huge focus on social media as a means to promote both the brand and the location.
Hostels are changing rapidly, and are today where hotels were maybe 20 years ago. Guests at never@home can expect great locations, modern design, super food and beverage, cutting edge technology, excellent security and professional management. Our hostels will be hip, exciting, social, surprising and generally great fun. We will also have scale and this will provide both critical mass and the ability to compete across a diversity of youth sectors”
“ Cape Town and Greenpoint are the perfect location for our first hostel in South Africa. The City is gaining a high profile amongst young travelers, it is vibrant, tourism is growing and this place has so much to offer to all sectors of the youth travel market. Greenpoint has changed dramatically in recent years, the hostel is 5 minutes walk from both the Waterfront and the Cape Town Stadium, access to town and the beaches is easy via MyCiti and the “strip” has a brilliant mix of restaurants, bars and nightclubs within walking distance. We want to use our Greenpoint home as a base from which to grow into Southern Africa. We already have plans for hostels in Johannesburg, Durban, Kruger, Victoria Falls and Maputo”
Joe Bester, Director of the Fairtree Hospitality Fund commented “our mandate is to source properties that have upside potential and then engage management that can deliver superior returns. We believe that the youth travel market offers a market niche that remains unexploited in Southern Africa and offers opportunity for both income and capital growth. We were impressed by the concept and business model presented by the team at never@home and look forward to participating in the growth of this exciting new brand”
never@home represents the next generation of design hotels. Hip, modern, fun, secure and with professional management the company provides for the requirements of the growing youth travel market. Great locations, value for money accommodation, cutting edge technology, happening bar and grill, innovative events and staff that are both friendly and knowledgeable are the main characteristics of this exciting new brand. never@home will open in Green Point, Cape Town in November 2014 and thereafter will expand into locations in Southern Africa.
Contact: Nicole Weitsz
Cell: 076 986 0035
Fairtree Capital is a South African boutique fund management company, focused on award winning equity, fixed income, commodity, credit and multi strategy mandates with over R14 billion under management. The Fairtree Private Equity Hospitality Fund is focused on the acquisition of hotels significantly below replacement value. The fund uses its expertise, in association with hospitality management, to create value for its investors.
Please contact: Joe Bester