The Rezidor Hotel Group South Africa have announced that they will continue to operate and manage the Radisson Blu Hotel in Port Elizabeth, and that it was business as usual.
This follows an article in The Herald this morning which reported that the premier five-star hotel has been placed under liquidation three years after the R330-million hotel’s glitzy launch, and that the hotel has accrued “substantial debt.”
The hotel is the flagship asset of Port Elizabeth based Auspex Hotels and Leisure, founded by Ben Nyaumwe. Nyaumwe has since resigned from Auspex’s board of directors and has stated the liquidation has nothing to do with him.
Theodor van der Heever of Johannesburg-based DT Trust, as well as Port Elizabeth attorneys Punithan Naidoo and Nash Vandayar, were appointed by the high court to handle the provisional liquidation of the hotel on Tuesday.
“We have taken note of the liquidation application brought against Auspex Hotels Leisure, owner of the Radisson Blu Hotel Port Elizabeth, by Absa,” said Andrew McLachlan, Carlson Rezidor’s Vice President of Business Development for Africa and the Indian Ocean Islands.
“However, we would like to emphasize that this liquidation matter is a shareholder issue, and it does not affect the hotel’s day-to-day operations. The hotel operation is profitable and will thus remain open under the Radisson Blu brand and management.”
“Although we are not directly affected, it makes sense for us to keep abreast of developments. In the interim, however, nothing changes in terms of the hotel’s operations, and it is business as usual,” he added.
McLachlan said that Carlson Rezidor will nevertheless monitor proceedings.