QUEENSGATE AND THREE CITIES ENTER HOTEL MANAGEMENT AGREEMENT

13 October 2009 – Queensgate Hotels and Leisure Limited (“Queensgate”) today announced that it has entered into an agreement with Three Cities Management Limited (“Three Cities”). The deal will see Three Cities taking over the management of all Queensgate hotels effective immediately, on a fee sharing basis.

Queensgate Hotels and Leisure CEO, Andrew Hubbard, comments: “We are excited about this agreement which will not only see our hotels managed by the exceptional Three Cities, but also transfer reservations for our hotels to Three Cities’ sophisticated online reservation service which will enhance our customers’ experience.  In addition, the link with Three Cities will strengthen the position of the Queensgate hotels in the corporate, government and domestic sector, an area in which Three Cities has traditionally been and is very strong.”

Mike Lambert, Chief Operating Officer of Three Cities added: "Taking over management of the Queensgate hotel portfolio is exciting for us and will ensure optimum use of our management expertise and our sales, marketing and online reservations infrastructure.  We are delighted to be working with Queensgate and are in discussions regarding further opportunities for collaboration going forward. This collaboration is a perfect fit in that both organisations are able to capitalise on each others strengths and focus on their core competencies.”

One such opportunity would be the addition of training in world class Spa operations, based on Queensgate’s One Wellness, to the hospitality industry training currently offered by Three Cities at their International Hotel School.

As part of a second phase agreement, Three Cities will hand over its hotel development opportunities to Queensgate Business Development, a subsidiary of Queensgate.  Effectively this means that all business development for both groups will be handled by Queensgate, being a core competency of theirs. 

Queensgate specialises in the hospitality and leisure sector in South Africa. The company focuses on leasing and operating hotel and leisure assets, and identifying key investment opportunities within the hospitality industry. Through its property development subsidiary, Queensgate Business Development, the company provides technical assistance to take a project from vision to reality, in the process bringing together developers and investors.

Three Cities manages and markets over 40 quality tourism and leisure properties and a diverse range of Africa’s finest hotels, resorts and game lodges in the major tourist and business centres of Southern Africa.  In addition to its highly regarded hotel management services, Three Cities has become a leader in hospitality training in South Africa, with the establishment of its International Hotel School (I.H.S).

Visit www.queensgate.co.za for further information on the Queensgate Hotels & Leisure portfolio. For more information on Three Cities, visit www.threecities.co.za