Southern Sun has reported some of its highest occupancy levels since the 2010 FIFA World Cup, with its South African hotels achieving 60,6% and the group achieving a global occupancy rate of 73,3% by October.
Southern Sun CEO, Marcel von Aulock and CFO, Laurelle McDonald shared the results during the release of the group’s unaudited consolidated half-year results for the period ended September 2025.
The group noted that domestic demand during this period was supported by sporting events, conferencing and group travel in Gauteng and the Western Cape, while corporate and government travel remained subdued due to delayed national budget approvals and the timing of Easter.
The group anticipates demand will remain strong, supported by major upcoming events, including the G20 conference, repeat anchor events like the Parliamentary opening, the Mining Indaba and various sporting events, alongside the peak summer period.
Local properties’ performance
Southern Sun’s Sandton Consortium, comprising Sandton Sun and Towers, Garden Court Sandton City and management fees from the Sandton Convention Centre, recorded the strongest revenue growth at 16%, driven by strong conferencing demand and the reopening of Sandton Towers post-refurbishment. However, Gauteng only saw revenue growth of 4%, with a portfolio including Southern Sun OR Tambo, Rosebank, Hyde Park, Katherine Street, Sandton and Pretoria.
In the Western Cape, revenue rose by 9%, buoyed by foreign inbound travel and large-scale events and international sporting. The portfolio includes Southern Sun Cape Sun, Newlands, Cullinan, Waterfront and De Wagen.
KwaZulu-Natal’s revenue increased by 7%, from The Edward and Southern Sun Elangeni & Maharani. The group explained that Durban’s beachfront hotels relied heavily on consistent conferencing and group demand. Umhlanga remains the stronger performer and key growth node in the province.
The remaining properties in Mpumalanga, Eastern Cape, Kimberley, Bloemfontein and Polokwane collectively saw revenue grow by 10% due to conferences and sporting events.
Regional properties performance
Southern Sun found that the temporary closure of Paradise Sun in Seychelles for refurbishment accounted for reductions in revenue. However, the hotel’s relaunch was well received, and occupancy rates are recovering.
Other offshore properties underperformed, noted the group. Its property in Maputo, the group says, was affected by political unrest since December 2024. Southern Sun Dar es Salaam, which reopened in October 2024, contributed positively to revenue but remains below breakeven.
Southern Sun Ridgeway in Zambia was the only offshore property to deliver growth, supported by improved economic conditions.
Upcoming developments
Southern Sun is pursuing expansion opportunities in the Western Cape and KwaZulu-Natal.
In Cape Town, it is advancing a proposed joint venture to develop two landmark mixed-use properties in the Foreshore precinct.
In KwaZulu-Natal, the group is engaged in the Southern Sun Hotels & Residences Oceans Umhlanga project through a management contract.
