New hotel brand launched in South Africa

New hotel brand launched in South Africa

The reception area at Home* Suite Hotel Bristol, on the corner of Oxford and Bristol roads in central Rosebank, which is due to open this week.

The R350 million Cape Town based hotel fund, Lucid Ventures, recently announced the launch of a new boutique hotel brand Home* Suite Hotels into the South African market.

Lucid is an investment fund that facilitates tax deductions for its investors through its section 12J certification. The SARS incentive, a critical growth enabler to the South African economy, keeps investment funds onshore and stimulates high growth and job creating industries like tourism.

Lucid founder, Gidon Novick, formerly founded kulula.com and the SLOW lounges as co-chief executive of Comair. His co-directors at Lucid are Andrew Kuming, head of urban developer K&S and Graham Wood, former head of Tsogo Sun.

Novick says: “Lucid Ventures is a 12J investment manager with a focus on hotels. Lucid’s integrated model combines fund management skills with property development and hotel management capabilities. The model entails buying into new residential builds and operating these as well as co-developing our own hotels under the Home* Suite Hotels brand.

“Lucid Ventures is subject to all of the regulations of Sec 12J of the Income Tax Act. The business model is based on efficient capital sourcing through 12J, low in-house development costs and a premium experience at a competitive price point in the four-star market. Home* Suite Hotels will be positioned in the gap identified between large 150+ room international branded hotels and high-end independent boutique hotels.”

Lucid’s first hotel, the R50 million Home* Suite Hotel Bristol on the corner of Oxford and Bristol roads in central Rosebank, will open this week. Over the next 24 months, this project will be followed by hotels in Rosebank and Sandton in Johannesburg, and Sea Point, Gardens and De Waterkant in Cape Town.

The 25 to 80 key hotels will feature larger room sizes, a suburban feel and cutting-edge design by SLOW lounge creator Tonic Design.