An aerial view rendition of EThekwini Municipality’s beach front properties which will continue to be leased to Southern Sun. Picture: Supplied
Southern Sun will continue leasing the beach front properties on Durban’s Golden Mile.
eThekwini Municipality Mayor Cyril Xaba announced that the city has appointed Southern Sun Hotel Interest as the preferred bidder for the long-term leasing and redevelopment of these properties for a period of 50 years.
“With over 50 years of expertise in the hospitality sector and an extensive collection of over 90 hotels and resorts in South Africa, Africa, the Seychelles and Middle East, Southern Sun Hotel Interest is ideally positioned to spearhead the redevelopment and operation of these properties,” said Xaba.
The mayor also revealed that the properties will see extensive upgrades to the tune of R1 billion, which includes R622 million on the Elangeni and Maharani, R157 million on movable assets and R348 million on hotels owned by the same entity in line with a functionality requirement that required bidders to further invest on the Durban beachfront precinct and stipulate which property or properties the investment is going to be made.
“The redevelopment entails an estimated capital investment of R1 billion, including the refurbishment of the Elangeni and Maharani hotels as well as the Garden Court South Beach and The Edward hotels which are also owned by Southern Sun,” said the mayor.
Xaba expressed that he was proud of how the municipality had dealt with the issue of the lease of these important properties and particularly thanked the City Manager Musa Mbhele and the Real Estate team for their dedication in managing this complex process in line with the various laws and regulations governing the municipality.
“We wish to also thank Southern Sun for staying the course with our municipality despite the numerous challenges experienced by our province and particularly the hospitality industry over recent years, which includes the Covid-19 pandemic, the devastating floods and July civil unrest.”
“Southern Sun has demonstrated its commitment to both transformation and inclusive economic development of this important City asset.
“We are particularly excited about the significant economic impact and job creation that the redevelopment brings for our City,” said the mayor.
Commenting on their appointment, Marcel von Aulock, the CEO of Southern Sun, said that the Group is delighted that the City has managed and concluded the process for the selection of a preferred bidder for these iconic properties which are vital to the long-term maintenance and rejuvenation of the Durban Beachfront.
“Southern Sun has a long history of operating on the beachfront and the area is very much part of our DNA with some of the best hoteliers South Africa has produced developing their careers at these hotels.
“We remain committed to seeing Durban unlock its full potential as a premier leisure, conference and sporting destination for South Africa and look forward to working with the eThekwini Municipality to achieve this,” said Von Aulock.