PEERMONT, the name of Ernie Joubert’s hotel, gambling
and leisure group, can be translated as “Peak of
Nobility”. And this casino king has his own crown, at
the top of his company’s logo.
For a king who’s showing signs of usurping Sol Kerzner,
South Africa’s world-famous casino king, Joubert,
Peermont Global’s chief executive, looked more like a
boring businessman than the king of casinos.
But I soon realised that I was completely wrong,
especially when Joubert agreed to pose for the
photographer in his sunglasses and was really upset that
he’d left his cigars and Panama hat at home.
But replacement props — a Marlboro and glass of Johnnie
Walker — were quickly found.
Joubert, after all, was once in advertising. But he’s
since learnt that investors in a listed company demand a
story of growth and good fortune, told with some sense
of seriousness.
He is clearly the right man to tell the tale. He was in
at the birth of Peermont, which started life as Global
Resorts in 1993. Global Resorts had an office in the
Rand Merchant Bank (RMB) building and R2-million in seed
capital.
Peermont has eight hotels and three casinos: Emperors
Palace (formerly Caesars Gauteng) near Johannesburg
International Airport, Graceland Hotel, Casino and
Country Club in Secunda, Mondazur at San Lameer in
KwaZulu-Natal, Grand Palm Hotel, Casino and Convention
Resort in Gaborone, and the Syringa hotels in Gaborone
and Francistown.
As well as being a raconteur, and a marketing and
advertising guru, Joubert is a frustrated architect. He
admits to having an obsession with tracing paper and
redesigns architects’ plans for his hotels by making
soon-to-be-discarded tracings over the originals until
he finds a design that makes him happy.
“I’ve learnt to be demanding when it comes to design,”
he said. “Once something is built, it’s difficult to
change it.”
Joubert “pays attention to every square metre”. When he
goes out or visits another group’s hotels he often paces
out the rooms and piazzas to estimate their
measurements.
When part of Emperors Palace was being designed, Joubert
retreated to his boardroom, armed with tracing paper and
pens, for most of December and the beginning of January.
When he emerged the design was perfect.
“After the twentieth plan, I was happy,” he said.
“Do you think you’re like Sol?” I asked him, having
heard stories about how the Sun King ordered that
recently built buildings be demolished when they didn’t
stand up to his scrutiny.
“I’m my own person,” he replied. “I’m not a Sol but I am
very hands-on — in that respect I’m similar.”
Joubert worked for Kerzner for almost six years and says
he “watched how Sol did it. He was demanding and
difficult, but very inspiring.”
Joubert said his own management style was “very
inclusive” and that he liked to make his employees feel
involved.
“We debate things and they have the freedom to achieve.
“The company is still entrepreneurial and has the feel
of a family business. Many of my best friends work
here.”
Peermont, which listed in September, is still relatively
small with a market capitalisation of only R2.5-billion
and revenue of R917-million. But Joubert has plans to
expand the group both locally and internationally.
Peermont’s bid for the contract for the development and
management of a gaming resort in Singapore has been
short-listed and the company is looking for other
opportunities, particularly in the UK and US.
“We’ll look at attractive acquisition opportunities
internationally, but we’ll be very careful,” Joubert
said.
“When you buy something you usually know more about what
you’re getting than when you build.”
He’s looking for development and management contracts
here and abroad.
Back at home, Peermont could acquire more hotels and
casinos, develop new sites from scratch and expand
existing projects — if the omens are right.
Joubert started Peermont “because of the signs”.
He’d told Sun International that he would be leaving
them but hadn’t decided where he would go.
“I was head-hunted from my own advertising agency to
join a company so it was obvious that I was more of an
entrepreneur than a corporate person,” he said.
He left advertising agency Joubert, Graham, Scott &
Partners for Sun International.
It was on a business trip to the US that he decided he
wanted to emulate Sun International. He wrote his
10-point business plan on a pocket notepad while at
dinner with a colleague.
Searching for omens, he promised himself that if he won
at the casino that night he would follow through on his
business plan.
He won at blackjack, roulette and craps.
He bounced his ideas off his old university friend,
FirstRand Bank chairman GT Ferreira, who agreed that RMB
would lend Joubert R2-million as seed capital and give
him an office.
“Next day, all hell broke loose,” Joubert said.
An article appeared in the Business Times with the
headline: “RMB gambles on R1-billion new casino group”.
“Everyone thought I had R1-billion, which I didn’t, but
I was inundated with calls.”
Joubert’s first acquisition was a bankrupt hotel in
Gaborone.
“Investors were skeptical,” he said. “I had never before
managed this type of business. I was a marketing guy.”
But his story was obviously persuasive because Peermont
is now the highest-rated share in the leisure and hotels
sector of the stock exchange on a price-to-earnings
ratio of 16.
Though Joubert says he isn’t a gambler, except for a bit
of fun and relaxation, he’s gambled a lot.
But the odds seem to be in his favour and, so far, he’s
winning
Joyland
Casino
