FLAGSHIP hotels, Elangeni and Maharani, and the eThekwini Municipality yesterday signed a lease agreement that will see 50 more years of partnership. The current lease for these hotels will expire in December 2025. The new 50-year lease was awarded to Southern Sun following a bidding process.

Ward 26 councillor Sbusiso Lushaba is convinced that the partnership will continue to boost the economy and benefit the people of the ward.
“We congratulate Southern Sun and eThekwini Municipality for reaching this milestone, putting Durban on the world map. We are delighted to be part of history in the making. This will undoubtedly create job opportunities, attract more investment, and preserve current jobs.

“We are mindful that the process leading to this agreement had been tainted with negative impressions; we are happy that all the issues were addressed and the goal was reached, and all is in order,” Lushaba said.
He is hopeful that they will work together with law enforcement to ensure that visitors and tourists enjoy safe and secure experiences on the beachfront.

eThekwini City Manager 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,” Mbhele said.

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CEO of Southern Sun Marcel von Aulock said despite economic challenges, the hotel group has kept its faith in Durban and looks 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% of their bookings are for Durban, which shows that visitors are just as supportive of their vision for the City.

Also read: Redevelopment of Durban beachfront hotels on horizon

The City revealed that the R1b capital investment will comprise R622m for the upgrade of the Elangeni and Maharani, R157m for movable assets, and R348m on two additional hotels owned by the same entity. Another R5m will be invested towards the development of the Sunken Gardens opposite the hotels.

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