Kempinski Hotels told HOTELS on Friday that it has reached an agreement with The Ohlthaver & List Group of Companies (O&L Group) to end the management contracts for the Mokuti Lodge at Etosha National Park and the planned Strand Hotel project in Swakopmund, both in Namibia, effective November 30, 2012. Kempinski had managed the Mokuti Lodge property since 2008.
According to Sven Thieme, executive chairman of the O&L Group, this move came about mainly as a result of the global economic crisis that had a major negative impact on the tourism and travel industry. He added, “It is for this reason that both IFA Hotels & Resorts, Kempinski Hotels as well as the O&L Group found it necessary to review our business model and hence our decision to end our partnership amicably. Having arrived at this decision, however, does not rule out any future considerations for a new Kempinski Hotels and O&L Group partnership format.”
O&L Leisure (Pty) Ltd has assumed the full responsibilities of day-to-day management of the resorts. The resorts in question include the O&L Leisure-owned Mokuti Lodge at Etosha National Park and the planned development of the Strand Hotel project in Swakopmund. O&L Leisure has appointed Bruce Hutchison as its managing director and Shepherd Chinhoi as its general manager of operations. Thieme stated there will be no interruptions to the management or operational aspects at Mokuti Lodge because of this change.
Reto Wittwer, president & CEO of Kempinski Hotels, confirmed that Kempinski Hotels remains committed to expansion in Africa. “This is a region which Kempinski Hotels feels has great potential for the luxury hospitality industry,” he said. “The group is already present with five properties under operation and a further nine under construction or final development.”