The Arabella Western Cape Hotel & Spa, near Hermanus, and the Westin Grand Arabella Quays Hotel, in Cape Town, are to go on sale.

The hotels are owned by the German company Schörghuber Unternehmensgruppe and the company has been feeling the pinch after the financial crisis. It is also in a restructuring period after the Chief Executive, Stefan Schörghuber, died unexpectedly at the age of 47 last year.

The company stated that it had not lost confidence in South Africa though.

An industry expert suggested that the hotels might well be bought by foreign buyers.

Reported by Fin24