The Southern Sun Hotel Group has won the bid for the 50-year lease and redevelopment of Durban’s landmark Golden Mile hotel, the Elangeni & Maharani, after a lengthy tender process.
Southern Sun’s existing lease on the properties was to have ended next year.
Ethekwini Municipality Mayor, Cyril Xaba, made the announcement on September 27, saying the lease and R1 billion redevelopment project would act as a catalyst for more investment, and the recovery and growth of Durban’s business economy, reports TimesLive.
Southern Sun’s redevelopment project encompasses the refurbishment of the Garden Court South Beach and The Edward hotels.
“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 is to be allocated to restoring the Sunken Gardens, a municipal beachfront park.
Xaba says the redevelopment projects will be crucial to Durban’s inner-city regeneration.
“The issues in Durban are not insurmountable,” said Marcel von Aulock, CEO of Southern Sun. “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.”