Southern Sun Hotels and eThekwini Municipality have signed a R1 billion lease investment for the redevelopment of Durban’s iconic Elangeni and Maharani hotels.
The new 50-year lease, secured through a bidding process, follows the municipality’s RFP issued in November 2023. The current lease for the two beachfront properties expires in December.
Forming part of eThekwini’s Proactive Land Release Strategy, the agreement supports the vision of the Inner City Local Area Plan, which seeks to protect and improve Durban’s beachfront as a key tourism asset.
The investment includes R622 million for the upgrade of the Elangeni and Maharani, R157 million for movable assets and R348 million for two additional hotels owned by the same entity. A further R5 million will be allocated to upgrading the Sunken Gardens municipal park opposite the hotels.
Thembo Ntuli, Chairperson of Durban’s Economic Development and Planning Committee, 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.”
The redevelopment will include modernised rooms, new restaurants, rooftop venues, upgraded conference facilities and sustainability measures such as solar power and water-saving systems.
Southern Sun CEO Marcel von Aulock reaffirmed the group’s confidence in the city’s tourism future: “All our hotels are commercially viable despite some challenges we have experienced. The eThekwini Municipality sees us as a partner and we are looking forward to working together towards a common goal.”
Von Aulock added that 70% of the group’s recent summer sale bookings are for Durban, reflecting improved visitor confidence in the destination.
