Tsogo to invest R24m in unified post-merger image

AS PART of the integration of the Gold Reef Resorts assets absorbed by Tsogo Sun in their R21 billion merger last year, Tsogo will invest about R24 million to create a new corporate identity and integrate the loyalty programmes across the casinos and hotels.

The rebranding follows the restructuring of the two businesses which necessitated centralising of marketing, information systems and administration, Tsogo Sun chief marketing officer Rob Collins said at Tsogo’s flagship property, Montecasino, yesterday.

Tsogo would use the concentric half-circles of the Southern Sun sunburst logo across all 95 of its hotels and 15 casinos, Noeleen Bruton, Tsogo Sun’s group marketing director, said.

Southern Sun, previously the umbrella brand for the hotel division of Tsogo Sun, and Tsogo Sun Gaming, the group’s casino and entertainment division, had been incorporated into the Tsogo Sun identity, unifying the company under one name and logo, the company said yesterday.

Southern Sun will, however, remain as a hotel brand for premier hotels.

The loyalty programme is being extended across the group, making hotel guests and gamblers eligible for similar benefits at venues throughout the group.

Ms Bruton said 55% of the revenue in the gaming segment was generated by loyalty cardholders, and "with some properties that is as high as 80%".

The loyalty cards were "behaviour driven", Ms Bruton said, which meant cardholders were obliged to maintain a certain level of activity in order to maintain their user benefits.

This was an important driver of growing spending, she said.

The merger of Tsogo and Gold Reef was the trigger for the rebranding exercise, Mr Collins said, but it had been overdue as the business had accumulated a number of brands over the past four decades.

These brands included Garden Court, Holiday Inn and EasyStay, he said.

Tsogo had saved costs on the rebranding by holding off on new signage for some of its hotels, and encouraging staff to deplete existing stock of branded items such as business cards and stationery.

Chip replacement in the casino will be phased in as the need for new chips arises.

Gaming chips were replaced every five years, Ms Bruton said, at a cost of about R30 million.

Separately, Graham Wood, MD of hotel division Southern Sun, said the refurbishment of The Grace hotel, acquired last year for R85 million, was on track for the hotel to open on July 1 under the name 54 on Bath.

About R20 million had been invested in the 75-room hotel and it would be the second five-star boutique hotel in the group, he said.