The Public Service Pension Fund (PSPF) of Eswatini has reported strong returns on its investment in the Hilton Garden Inn in Mbabane, which opened in 2019. PSPF Chief Executive Officer Masotja Vilakati stated that the fund began seeing returns on investment after three and a half years. The hotel, a partnership between PSPF and the Hilton Group, has provided valuable experience in the hospitality industry. This success is fueling PSPF's plans to revamp and reopen the historic Royal Swazi Spa in Ezulwini.
The Royal Swazi Spa, a leisure and resort property, is expected to perform even better than the Hilton Garden Inn, according to Vilakati. The hotel's positioning and rich history make it an attractive investment opportunity. In contrast to the Hilton Garden Inn, which primarily caters to business travelers, the Royal Swazi Spa is situated in a tourism and leisure environment. This difference is expected to drive better performance. The PSPF is hopeful that the Royal Swazi Spa can capitalize on its unique strengths.
The PSPF has yet to conclude an agreement with an operator for the Royal Swazi Spa, but discussions are underway with the Hilton Group and other prospective operators. Vilakati stated that the fund's model is to partner with an experienced operator who can manage the property. The PSPF is not planning to operate the Royal Swazi Spa directly. Instead, it will appoint a technical expert to oversee the hotel's operations.
The Royal Swazi Spa requires investment to upgrade its facilities, but the exact cost will depend on discussions with the chosen operator. Vilakati mentioned that the property is currently habitable and could potentially remain open during renovations, which would be carried out in phases. This approach would allow the hotel to continue generating revenue while improvements are made.
Tibiyo TakaNgwane Managing Director Dr AT Dlamini expressed confidence in the partnership between PSPF and the Hilton Group, stating that the deal is "good as finished." He expects the hotel to reopen soon, potentially by the end of December. Dlamini emphasized his faith in the project's success.
The PSPF's strategy is to build on the experience and returns from its first Hilton-backed hospitality investment while positioning the Royal Swazi Spa as a larger leisure-sector opportunity. The fund is leveraging its experience with the Hilton Garden Inn to inform its approach to the Royal Swazi Spa. This includes understanding the importance of investing in the right areas to drive returns.
The reopening of the Royal Swazi Spa is expected to have a positive impact on Eswatini's tourism industry. The hotel's revival will provide new opportunities for leisure travelers and locals alike. As the PSPF moves forward with its plans, it will be closely watched by stakeholders in the hospitality industry.
Key points
- PSPF sees strong returns on Hilton Garden Inn investment
- Royal Swazi Spa expected to perform better due to leisure and resort positioning
- PSPF to partner with experienced operator to manage Royal Swazi Spa
