Southern Sun Hotels and eThekwini Municipality Sign 50-Year Lease

 

By Fred Felton | Nov. 11, 2025

The eThekwini Municipality and Southern Sun Hotels recently signed a R1 billion lease on 29 October for the redevelopment of two of Durban’s iconic hotels, the Elangeni and Maharani Towers.

EThekwini Municipality and Southern Sun Hotels signed a 50-year lease agreement to redevelop the Elangeni and Maharani Towers. The partnership will also see the upgrade of nearby amenities, including a Municipal park. | Photo: Supplied. 

The current lease for these hotels is set to expire in December 2025.

This new 50-year lease was won by Southern Sun after a fair and transparent bidding process. This was after a Request for Proposals from industry in November 2023.

This lease agreement is a major part of the Municipality’s Proactive Land Release Strategy and allows the Municipality to realise its vision as set out in the Inner City Local Area Plan, which aims to protect and enhance the beachfront as a key tourism asset.

This R1 billion capital investment will see R622 million go to the upgrade of the Elangeni and Maharani, R157 million for movable assets and R348 million on two additional hotels owned by the same entity.

This is part of a functionality requirement that required bidders to further invest in the Durban beachfront precinct.

There will also be another R5 million invested towards the development of the Sunken Gardens, a Municipal park opposite the Elangeni and Maharani hotels.

‘’The integrity of the Golden Mile depends on these hotels. They are not just structures, they are symbols of Durban’s identity, resilience, and ambition. We extend our deep gratitude to Southern Sun as this lease agreement is a declaration of intent that Durban will grow broadly and inclusively,’’ said Chairperson of the City’s Economic Development and Planning Committee Councillor Thembo Ntuli, representing eThekwini Mayor, Councillor Cyril Xaba.

Chairperson of the Human Settlements, Engineering, and Transport Committee Councillor Themba Mvubu noted that the City’s Land Release Strategy aims to turn Municipal assets into engines of growth and empowerment.

‘’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,’’ said eThekwini City Manager Dr Musa Mbhele.

This redevelopment will see modernised rooms, restaurants, rooftop experiences, conference spaces, and sustainable solutions like solar power and water-saving systems.

‘’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,’’ noted CEO of Southern Sun Marcel von Aulock.

Von Aulock also revealed that since the launch of their summer sale, 70 percent of their bookings are for Durban, which shows that visitors are just as supportive of their vision for the City.