162 new hospitality suites for Cape Town stadium
According to the City’s business plan for the stadium, it will be looking into expanding its hospitality offerings in line with international research and benchmarking of commercially successful international stadiums.
“Cape Town Stadium has embarked on the expansion of its in-stadium hospitality offering. This involves the design and construction of additional suites at Cape Town Stadium.
“The operations and events department will be responsible for the managing and oversight of this strategic capital project. The project increases the number of suites by 162, bringing to 230 the total number of suites available at the stadium.
“This project is scheduled to be completed in February 2021,” the business plan says.
The business plan stated that a critical commercial revenue generator was the Naming Rights to Cape Town Stadium. This initiative has advanced as there are discussions under way in securing a naming rights partner.
Through a tender process three naming rights partners have expressed interest. The revenue from naming rights, about R23m a year from anchor tenant Western Province Rugby Union, will reduce the stadium’s grant from the City to more than R71m in the current financial year to R29.3m by 2022/23, the business plan says.
Deputy mayor and mayoral committee member for finance Ian Neilson said: “The need to increase the number of suites at Cape Town Stadium was identified during the various financial modelling phases whereby it was evident that additional suites significantly increase the earning potential of a stadium. Additional suites present the opportunity to sell packaged experiences, such as hospitality, food and beverages, thus creating a more profitable financial model.”
The business plan wants to create more commercial space available for property rentals.
“Approximately 3500m² in size has been identified for the purposes of commercial and retail space.
“A rigorous valuation process was conducted for those spaces whereby the price was determined to be between R90/m² to R170/m² in size depending on the actual location and other related factors,” Neilson said.@MarvinCharles17