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 current lease for these hotels will expire in December 2025. The new 50-year lease was won by Southern Sun after a fair and transparent bidding process. The award responded to the Request for Proposals from industry issued in November 2023.
The R1-billion capital investment will be broken down to R622-million for the upgrade of the Elangeni and Maharani, R157-million for movable assets and R348-million on two additional hotels owned by the same entity.
This is in line with a functionality requirement that required bidders to further invest in the Durban beachfront precinct.
Another R5-million will be invested towards the development of the Sunken Gardens, a Municipal park opposite the Elangeni and Maharani hotels.
The redevelopment includes modernised rooms, restaurants, rooftop experiences, conference spaces, and sustainable solutions like solar power and water-saving systems.
Chairperson of the City’s Economic Development and Planning Committee Councillor Thembo Ntuli, representing eThekwini Mayor Councillor Cyril Xaba, said: “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.
EThekwini City Manager Dr Musa Mbhele stressed the importance of partnerships for economic growth. “A resilient city anticipates change, adapts, and draws strength from partnerships. By building alliances between public and private sectors, the City and community, and infrastructure and events; we will fortify Durban’s future and harness tourism for inclusive growth. This will help uphold our status as Africa’s premier destination for festivals, events, and tourism.”
The redevelopment includes modernised rooms, restaurants, rooftop experiences, conference spaces, and sustainable solutions like solar power and water-saving systems.
CEO of Southern Sun Marcel von Aulock said despite economic challenges, the hotel group has kept its faith in Durban and is 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.”
Von Aulock added that since the launch of their summer sale, 70 percent of their bookings are for Durban, which shows that visitors are just as supportive of their vision for the City.
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