ABOUT TSOGO SUN
📊 Tsogo Sun was first established in 1969 by prominent businessman Sol Kerzner, growing to become one of the leading hospitalities, gaming and entertainment empires on the African continent today.
📊 Prior to 1994, the group’s operations were limited to hotels as gambling in South Africa was heavily restricted. When the new democratic government came to power, gambling was legalised, which enabled the group to add 14 gaming destinations to its portfolio.
📊 The company’s high-value portfolio includes casinos, popular entertainment destinations and hotels, with a wide geographic footprint that spans across South Africa, Mozambique, Nigeria, Zambia, Tanzania, Kenya, the Seychelles and the Middle East. With its market operations divided between the Tsogo Sun Gaming and Tsogo Sun Hotels divisions, the company is prominent across a variety of price points wtih a range of 80 owned or leased budget to luxury hotels, encompassing StayEasy, Holiday Inn, Sun Resorts, the Sandton Sun and the Intercontinental under its Hotels division.
📊 Apart from its hospitality offering, Tsogo’s gaming division rakes in 72% of the company’s revenue with such prominent entertainment destinations as Montecasino, Gold Reef City, Silverstar and Suncoast.
📊 With such an impressive portfolio, the company boasts a historically strong share price on its listing on the Johannesburg Stock Exchange (JSE), where it trades under the stock symbol –TSH with a market cap of over R22 billion.
VISION & VALUES OF TSOGO SUN
- Tsogo Sun’s financial data has reflected a strong performance amidst slowing economic growth, with an increase in income of 8% to over R 12 billion in 2016 alone, and shareholders enjoying a 10% increase in full year dividends. The group has also worked to enhance its existing portfolio with R 962 billion spent on new hotel purchases as well as the upgrade and expansion of its existing properties.
- Added to this, the group has also focused on diversifying its portfolio and expanding its market presence in the UK and Europe by making the decision to buy a 25% stake of Redefine BDL Hotel Management and the International Hotel Group.
- The group’s strong performance has been bolstered by the growth of its two key hotel and gaming divisions.
- The hotel division has benefited from portfolio diversification with the group also operating on a capital-intensive basis in order to maintain and enhance the quality of its hotels.
- The group’s gaming division has benefited from strategic placement in key urban centers and entertainment hubs, allowing its facilities to remain relevant and responsive to consumer trends.
- Overall, the Tsogo’s strategy of maintaining the relevance of its entertainment centers while preserving positive relationships with its tenants and stakeholders have served to position the group in the market while ensuring sustained growth forecasts. These positive trends are good indicators of the sustained value of the Tsogo Sun share price for those who choose to buy them on the JSE in 2019 and beyond.
MARKET PERFORMANCE OF TSOGO SUN
- Tsogo Sun’s move towards international diversification will serve to mitigate the current downswing in the South African economy, maintaining its performance and allowing it room to capitalize on future growth with the inevitable upswing of the consumer economy.