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.
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| 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.
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