The redevelopment entailed an estimated capital investment of R1bn, 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. Picture: Shelley Kjonstad/Independent Newspapers
The tourism sector has welcomed the announcement that Southern Sun is set to invest millions of rand in the upgrades of the two premier hotels it is managing on the Durban beachfront.
The eThekwini Municipality revealed on Friday that the Southern Sun Hotel Group was the preferred bidder for the lease and redevelopment of the Elangeni and Maharani hotels for a period of 50 years.
Close to R1 billion will be invested by the group in the redevelopment of the two hotels and two others in the beachfront area.
The announcement followed a public bidding process for the two properties, whose current lease is expiring next year.
The news has been welcomed by tourism bodies in the city who said that the hotels were key to tourism in the beachfront and it was important that they be managed by skilled people.
The metro said the redevelopment entailed an estimated capital investment of R1bn, 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.
In addition, a fund of R5 million will be made available to restore and maintain the Sunken Gardens, a historically significant park owned by the municipality on the beachfront in front of the hotels.
In a statement, eThekwini mayor Cyril Xaba said that with more than 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 was ideally positioned to spearhead the redevelopment and operation of these properties.
“We are pleased that this development will enable the municipality to realise its vision of protecting and enhancing the beachfront as a key tourism asset,” he said.
The breakdown of the investment shows that, for Maharani Towers, there is a capital investment of over R226m to incorporate and maintain the five-star elements of the overall complex.
This will be achieved through the following developments: the upgrade of the lobby, the enhancement of the second-floor level, the full refurbishment of the suites which will bring a five-star element back to the Durban beachfront, and a roof-top pool bar which has some of the best views that Durban has to offer.
For Elangeni Towers, the capital investment is R354.2m, which includes the modernisation of the lobby, refurbishment of the bedrooms and introduction of a new restaurant concept.
Southern Sun will also invest R348m on the Garden Court South Beach and The Edward hotels.
In a statement, the City said: “The redevelopment also brings with it innovative solutions that promote sustainability and minimise the impact on the environment.
“The substantial solution to be introduced includes renewable energy in the form of solar panel installation and a water reuse system which produces roughly 15ML per annum.”
The City said the development would retain and create more job opportunities. For instance, Elangeni and Maharani currently employ 454 people, who would be retained.
“A further 200 jobs will be created during the refurbishment phase, which is expected to last for a period of 36 months,” it said.
Marcel von Aulock, the CEO of Southern Sun, said the group was delighted that the City had concluded the process for the selection of a preferred bidder for these iconic properties, which were 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.”
Brett Tungay, of the Federated Hospitality Association of South Africa (Fedhasa), said the association welcomed the announcement that Southern Sun would continue to manage the hotels.
“These are premier hotels in Durban and it was important that they continue to be managed by an experienced group,” he said adding that the tourism industry had been informed before Friday about the decision.
Thank you (Dankiza) Williams of the Durban Community Tourism organisation also said it was important that the hotels be managed by an experienced hand as they were central to tourism.
He called on the group to work with other stakeholders so they could benefit, adding that local accommodation would benefit if these hotels were fully booked.
The Mercury
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