Durban and Southern Sun seal R1 billion beachfront redevelopment deal
EThekwini Municipality and Southern Sun Hotels have signed a R1 billion lease investment for the redevelopment of two of Durban’s iconic hotels, the Elangeni and Maharani Towers.
Image: Supplied
The eThekwini Municipality and Southern Sun Hotels have finally signed a R1 billion, 50-year lease to redevelop the city’s landmark Elangeni and Maharani Towers.
The current lease is set to expire in December 2025, and the City said the new lease was awarded to Southern Sun following a fair and transparent bidding process in response to a Request for Proposals issued in November 2023.
The City added that "the lease agreement forms a major part of the Municipality’s Proactive Land Release Strategy and enables the Municipality to realise its vision as articulated in the Inner City Local Area Plan, which aims to protect and enhance the beachfront as a key tourism asset".
The R1 billion investment will be split across several projects, including R622 million for upgrades to the Elangeni and Maharani Towers, R157 million for movable assets, and R348 million for two additional hotels owned by Southern Sun.
While another R5 million will be directed toward improving the Sunken Gardens, a municipal park located opposite the hotels.
Councillor Thembo Ntuli, Chairperson of the Economic Development and Planning Committee, said the hotels are central to Durban’s identity.
“The integrity of the Golden Mile depends on these hotels. They are not just structures, they are symbols of Durban’s identity, resilience, and ambition. We extend our deep gratitude to Southern Sun as this lease agreement is a declaration of intent that Durban will grow broadly and inclusively.”
Chairperson of the Human Settlements, Engineering, and Transport Committee Councillor Themba Mvubu said the City’s Land Release Strategy "aims to turn Municipal assets into engines of growth and empowerment".
“The strategy is a tool to unlock opportunity, investment, and fix the imbalances of the past. This partnership proves that reform and growth can go together,” said Councillor Mvubu.
CEO of Southern Sun Marcel von Aulock said, "despite economic challenges, the hotel group has kept its faith in Durban and was looking forward to building a more resilient City".
“All our hotels are commercially viable despite some challenges we have experienced. EThekwini Municipality sees us as a partner, and we are looking forward to working together towards a common goal.”
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