Southern Sun’s securing of a 50-year lease to redevelop hotels along Durban’s Golden Mile sets the stage for a R1 billion (€52 million) rejuvenation of the city’s beachfront.

The hotel group’s lease renewal will cover the redevelopment of the flagship 734-room Elangeni & Maharani, along with the refurbishment of Garden Court South Beach and The Edwards.  

Southern Sun’s existing lease on the properties was to have ended next year.

The partnership between the hotel group and the Ethekwini Municipality was sealed after an intensive public participation and proposal request process.

Ethekwini Municipality Mayor, Cyril Xaba said the lease and redevelopment project would act as a catalyst for more investment, and be integral to the recovery and growth of Durban's business economy.

“I am very excited because this will spark further investments along the beachfront, adding more value to our city,” said Xaba.

The hotel group has pledged to retain current employees and create an additional 200 employment opportunities during the 36-month refurbishment period.

Additionally, R5 million (€260 000) is to be allocated to restoring the Sunken Gardens, a municipal beachfront park.

Southern Sun CEO Marcel von Aulock said that the infrastructure and safety issues in Durban were fixable.

“The issues in Durban are not insurmountable. It is really just the basics… it’s maintenance, keeping it clean, keeping it safe, enforcing the by-laws, no public drinking… nature has blessed you with the setting – just take care of it.”