Red Carnation opens in Africa

Red Carnation Hotels has opened its first property in Africa.

The 70-bedroom Twelve Apostles hotel, formerly de Oudekraal hotel, in Cape Town, South Africa, will be run as a management contract. Some R22m (£1.8m) has been spent on renovations since Red Carnation took over the property in April.

Turnover in the first year is expected to be R60.28m (£3.9m) with a projected annual occupancy of 72% and an achieved average room rate of R1,500 (£97).

South Africa is the home of Red Carnation founder and president Beatrice Tollman. Of the seven other hotels in the group five are in London, one in Geneva and one in Palm Beach, Florida.

Red Carnation Hotels managing director UK Jonathan Raggett said the decision to open in South Africa resulted from Tollman's connections, and increased business opportunities presented by the weakness of the rand. A new convention centre due to open in Cape Town next spring should also have a positive effect on business.

Red Carnation's longer-term strategy is to have 12 hotels around the world. New York tops the wish list for the next opening.