Southern Sun will continue leasing the beach front properties on Durbans 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.
