Koleka Cele is an example of what it means to be on top of her game in the hospitality industry.
She is the brains behind the birth of The Hill Boutique Hotel situated in Tsolo, Eastern Cape.
Cele realised that it was a struggle to get accommodation in this area and decided to do something about it with the help of the National Empowerment Fund (NEF).
The Hill Boutique Hotel is located along the N2 highway linking Gqeberha, Mthatha and Durban. It opened its doors in September 2024, coinciding with Tourism Month.
The hotel features 25 well-appointed rooms, along with two conference centres each accommodating up to 63 guests. Its amenities include a spa, mini gym, mini bar, and restaurant.
Cele said her original project was 17 rooms with two conference rooms, but the scope had to be expanded because the foundation for the building became too high, so her engineer proposed a basement, which ended up increasing the rooms.
“Due to additional space in the yard, I had another idea of creating a leisure park, with two large swimming pools, water slides and a kids’ jungle gym. Unfortunately, the original funding could not fulfil all these dreams, and I have had to put the leisure park on hold for phase two,” she said.
The leisure park is expected to create about ten more permanent job opportunities.
The journey to The Hill Boutique Hotel started when Cele acquired two sites, which were initially going to build a family home while keeping the other one for future development.
She said when her husband, who is in construction started building a big house they realised later that the house was too big and decided to convert it into a Bed and Breakfast.
“While we were still trying to complete the house, the Department of Social Development issued a tender for their office, we applied and were successful. The same house was then taken by the department for the local service office, and we ended up building a smaller house next to it for the family.
“I approached my architects to draft the hotel plans, even though I did not have the budget or proper idea of how I was going to make it. I wanted to fulfil my original dream of owning high-standard accommodation in the area where such is unexpected,” Cele said.
Funding approval
After waiting for a long time and on the verge of giving up, Cele’s application for funding at the NEF was finally approved. Cele received funding for R14.1 million which was used for construction, furniture, fittings, acquisition of two vehicles and working capital.
Her private investment of R1 million was allocated for land acquisition.
Cele who is successfully operating four petrol stations, including three in Tsolo and one in Mthatha, expressed her excitement about this new venture, noting that the hotel represents not just a business opportunity, but also “a chance to contribute to the economic upliftment of our community.”
The 43-year-old highlighted that the project created 100 temporary jobs during the 12-month construction period, and created 20 permanent jobs for the hotel operations, with at least 70% of the positions filled by women.
Cele admits that running such a business is not a walk in the park, as it comes with challenges, especially for businesswomen.
“Getting trustworthy staff that will not steal and be reliable is a big challenge especially in a cash business because all my other businesses deal with a lot in cash. Funding access is such a problem because wow, I was also on the verge of giving up the funding application.”
With a wealth of experience in running businesses, Cele learned to be calm in every situation because “I have realised that panicking has never solved any problems, instead it makes things worse.”
“The fact that government recognises women in business and has special funds that are for women only, [like] a portion of my funding at NEF is from the Women Empowerment Fund and therefore has got a lesser interest rate compared to the main loan. And finally getting funding from NEF [even] after a very long fight, was a victory,” said an elated Cele.
Cele’s NEF funding application process included a feasibility study to determine the need for accommodation in the area and building plans.
For bookings at The Hill Boutique Hotel contact 047 004 0051 or 079 959 5488. The hotel can also be reached via www.thehillboutiquehotel.co.za
For more information about the NEF visit www.nefcorp.co.za
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