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Key Points
- The group will launch a new hotel and 80 luxury residences in KwaZulu-Natal’s $281 million Oceans Umhlanga development.
- Southern Sun will invest in and manage the mixed-use $84.4 million South Tower, blending hotel rooms with upscale apartments.
- Backed by rising room and rental income, Southern Sun’s growth strategy includes $56.2 million in beachfront upgrades and renewable energy deals.
Southern Sun Limited, South Africa’s largest hotel group led by chairman John Copelyn, has taken a major step in growing its presence in KwaZulu-Natal, securing a key role in the landmark Oceans Umhlanga development.
The Johannesburg-listed group confirmed it will anchor the South Tower of the luxury mixed-use complex, a move that further strengthens its footprint in the fast-growing Umhlanga Rocks area.
The South Tower, valued at R1.5 billion ($84.4 million), marks the final phase of the R5 billion ($281 million) Oceans Umhlanga project. Construction is expected to wrap up by the end of 2027, adding to the development’s overall scale and prestige.
Introducing Southern Sun Hotel & Residences Oceans Umhlanga
As part of the deal, Southern Sun will launch the Southern Sun Hotel & Residences Oceans Umhlanga, a new property that blends hotel rooms with luxury serviced apartments. The development will feature 200 hotel rooms and 80 branded residences, each offering balconies with views of the Indian Ocean.
The group is not only managing the hotel but also investing directly in the South Tower and taking joint responsibility for the residences. This marks Southern Sun’s first entry into the branded residences space, a segment seeing steady demand from both short-stay travelers and long-term tenants looking for upscale living with hotel-style services.
Steady growth and strong foundations
Southern Sun’s latest move builds on a broader strategy to expand in key coastal markets while upgrading its existing properties. Under Copelyn’s leadership, the group has already invested heavily in revitalizing its Durban operations.
The Elangeni and Maharani hotels, two iconic properties on the city’s Golden Mile, have been merged into a single 700-room operation—one of the largest beachfront hotels in the country.
The group’s financial performance continues to support this growth. For the year ended March 31, 2025, Southern Sun reported a 19.4 percent increase in profit to $57 million. Revenue rose 9.3 percent to $368.6 million, with gains from both hotel operations and property rentals. Room sales were up 10 percent, while rental income grew by 19 percent.
Cleaner energy, smarter investment
Beyond new developments, Southern Sun is also working to make its operations more sustainable. A 10-year agreement with Discovery Green will supply over 90 percent of energy used at seven of its major hotels from renewable wind and solar sources.
In parallel, the group is spending R1 billion ($56.2 million) on refurbishing its prime beachfront properties in Durban, including further upgrades to the Elangeni-Maharani complex. These efforts reflect a longer-term focus on staying competitive in South Africa’s hospitality market by improving both its guest offering and environmental footprint.
