eThekwini head of real estate Thapelo Mmusinyane (left), City manager Musa Mbhele, eThekwini mayor Cyril Xaba, Southern Sun chief executive Marcel von Aulock and eThekwini chief financial officer Dr Sandile Mnguni. Picture: Supplied.
IN A SIGNIFICANT stride towards bolstering Durban’s economic landscape, Ethekwini mayor Cyril Xaba announced that the Southern Sun Hotel Group has been selected as the preferred bidder for the lease and redevelopment of the renowned Elangeni and Maharani hotels.
The partnership, sealed after an intensive public participation and proposal request process, sets the stage for a R1 billion investment destined to rejuvenate the city’s beachfront.
The Southern Sun Hotel Group, a level 1 B-BBEE South African registered entity, is granted a 50-year lease for the redevelopment project, which also encompasses the refurbishment of the Garden Court South Beach and The Edward hotels. This initiative is not just about refreshing infrastructure, but also about economic revitalisation, with the city's leadership enthusiastically supporting the development.
“To me, it is consistent with business confidence and it is rising in Durban,” remarked Mayor Xaba, beaming with optimism. “It also coincides with the opening of another hotel, not very far from where we are. It is a testament that ‘Durban is open for business’. Anyone doubting Durban’s soundness and prosperity needs to rethink their stance. We are already on an upward trajectory.”
Southern Sun, which currently employs about 450 people at the Elangeni and Maharani, has pledged to retain these jobs, with an additional 200 roles expected during the 36-month refurbishment period. This job creation is set to provide significant relief to the local economy, reinforcing Durban’s status as a burgeoning hub of opportunity.
A unique aspect of this redevelopment is the R5 million allocation dedicated to restoring the Sunken Gardens, a municipal beachfront park. This not only enhances the city’s aesthetic appeal, but also underlines the holistic vision driving the project – combining luxury tourism with community enrichment.
Marcel von Aulock, Southern Sun’s chief executive, expressed satisfaction with the City’s management of the bidder-selection process, exuding confidence in the potential of the venture.
“The issues in Durban are not insurmountable,” Von Aulock asserted. “It is really just the basics… it’s maintenance, keeping it clean, keeping it safe, enforcing the by-laws, no public drinking. You have a spectacular location; nature has blessed you with the setting, just take care of it. The city understands this, and I am confident of a positive outcome.”
Reflecting on the broader impact, Mayor Xaba highlighted the catalytic potential of the investment, urging other investors to follow suit.
“I am very excited because this will spark further investments along the beachfront, adding more value to our city,” he emphasised. “It’s a crucial part of our inner-city regeneration.”
As Durban looks ahead, the impending transformation of the Elangeni and Maharani hotels stands as a compelling symbol of the city’s resurgent dynamism. The blend of economic growth, job creation and urban beautification promises a revitalised future for the heart of KwaZulu-Natal.