BON Hotel Bloemfontein Central proud of its empowerment success story | Fin24
 
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BON Hotel Bloemfontein Central proud of its empowerment success story

Mar 14 2019 17:58

BON Hotel Bloemfontein Central began its certified transformation process in 2001, concluding it in 2017 with a 51% ownership by its employees via a trust fund structure.

The initial stages of the transaction saw the hotel create a profit-share scheme whereby staff members were reimbursed annually by as much as two months of their salary, depending on their position and service to the hotel.

In 2007, the owners appointed Lawrence Ndlovu, Josephine Mohapi and Blaise Guillaume to their board of directors, resulting in a 40% black representation on their board and a Level 1 B-BBEE rating. The hotel was recognised and awarded the Lilizela Tourism Award for the most empowered tourism business in South Africa.

Their continued empowerment, transformation and development strategy was taken up a notch in 2016 when 30% of the shares in the company were transferred to the Bloemfontein Hotel Staff Trust, a trust fund that was set up by the company for the benefit of its existing employees.

In 2017 a further 21% of the shares were transferred to the Trust, taking ownership of the hotel up to 51% of the shares in the business. The company now enjoys Level 2 B-BBEE rating.

Staff with a minimum of three years' service qualify as members of the trust and are paid dividends accordingly.

Mohapi who has been working at the hotel since 1992 when the current owners took over management ownership, said the employees feel proud to own a part of the company, the financial assistance has helped them to fulfil many a dream.

"Our guests should be proud to know that the money they spend with us will flow through to the people who are eagerly waiting to serve them," said Mohapi.

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