Southern Sun, The Preferred Bidder

The eThekwini Municipality recently announced the Southern Sun Hotel Group as the preferred bidder for the lease and redevelopment of the Elangeni and Maharani hotels for a period of 50 years.

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.

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.

The redevelopment also brings with it innovative solutions that promote sustainability and minimise the impact on the environment, including the installation of solar panels on both towers to augment the electricity supply and grey water system which produces roughly 45 ML per annum and should save approximately 35 % of the total annual water usage.

The Southern Sun Elangeni and Maharani currently employs approximately 450 employees, and all those jobs will be retained with a further 200 jobs created during the refurbishment phase which is expected to last for 36 months after commencement.

Marcel von Aulock, the CEO of Southern Sun, stated that the Group is delighted that the City has managed and concluded the process for the selection of a preferred bidder for these iconic properties which are 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.”