Mpumalanga hotel secures R3.5m blended funding for refurbishment
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A black woman-owned three-star hotel in White River, Mpumalanga, has received more than R3.5 million in blended government and development-finance funding to expand and upgrade its facilities.
Hotel 247, a black woman-owned three-star hotel in White River, Mpumalanga, has received more than R3.5 million in blended government and development-finance funding to expand the business, upgrade facilities and support job creation.
The package comprises a R1.65 million grant through the Tourism Transformation Fund, a R1.65 million senior loan from the National Empowerment Fund and R242,600 through the Alternative Energy Fund. The investment was unveiled during the launch of the hotel's refurbished restaurant, which can seat up to 140 patrons.
Formerly known as Forever White River, Hotel 247 has 52 en-suite rooms, a 140-seat restaurant and bar, and conference facilities that can accommodate up to 200 delegates. Businesswoman Khosi Mthalane acquired the property in 2021 during the Covid-19 pandemic before rebranding and repositioning it.
Deputy Tourism Minister Maggie Sotyu said at the launch that access to finance remained one of the biggest barriers facing emerging tourism businesses. "We speak often about transformation in tourism. But transformation cannot simply mean having more people participating at the edges of the tourism economy. It must increasingly mean owning assets, owning businesses, accessing markets, leading, and building wealth through tourism," she said.
The Department of Tourism said the investment created five additional permanent jobs and 15 temporary jobs during the renovation phase, with the hotel currently employing 29 people. The Tourism Transformation Fund, administered by the National Empowerment Fund, supports black-owned tourism businesses through a combination of grants, debt financing and equity contributions, and currently has 43 actively approved projects at various stages of completion and operation.
Sotyu said White River's position in the Lowveld tourism economy gives the hotel access to visitors travelling to attractions including the Kruger National Park, God's Window and the Panorama Route, and that the next challenge would be translating the investment into higher occupancy, stronger revenues and repeat business.