Southern Sun announces R1. 5 billion hotel project at Oceans Umhlanga
Image: eThekwini Municipality
The Oceans Umhlanga development continues to anchor major investment in KwaZulu-Natal, with Southern Sun announcing a landmark R1.5 billion hotel and residences project set to open in late 2027.
The announcement, made during the official roof wetting ceremony of the R1.4bn North Residential Tower on Friday, further cements Oceans Umhlanga's position as a key driver of regional economic growth. Southern Sun CEO Marcel von Aulock said: 'We're thrilled to be part of this extraordinary development. Oceans Umhlanga offers a world-class setting with unmatched positioning, and we are proud to anchor the hospitality component.
'This new hotel will stand as a flagship for our group and a key asset in our national portfolio.' The new property will be called Southern Sun Hotel & Residences Oceans Umhlanga and will cater to both short- and long-stay guests. It marks Southern Sun's return to the area nearly 60 years after it opened the Beverly Hills Hotel and adds to its existing portfolio of over 90 hotels and more than 300 conference venues across Southern Africa.
'This development represents a new opportunity for us to both increase our capacity in the vibrant Umhlanga Rocks area as well as enter a new market for quality serviced apartments,' said von Aulock.
'We are proud to be able to partner with the Oceans Umhlanga team and look forward to bringing something special to the market.' The partnership with Southern Sun brings the total investment into the Oceans Umhlanga precinct to over R5bn.
Oceans Umhlanga co-developer Vivian Reddy stated, 'We evaluated various hotel operators over the past year and selected Southern Sun as the leading hotel company in South Africa. Southern Sun is a household name in hospitality and brings world-class design, operational experience, and a deep understanding of the South African tourism market to a project that caters to both local and international travellers.'
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He added that Umhlanga faced a chronic shortage of premium hotel rooms. 'Our Radisson Blu hotel has consistently achieved high occupancies and is fully booked during every major event in Durban. Even with five more hotels, demand would still outstrip supply. That's why the Southern Sun Oceans Hotel isn't a competitor, it's a complement. Together with Radisson Blu, it will enrich the guest experience.'
Oceans Umhlanga CEO Brian Mpono described the precinct as 'more than a landmark development; it is a catalyst for Durban's long-term economic recovery and its rebranding as a globally competitive investment destination.'
'Our vision has always been to create a world-class mixed-use environment that integrates luxury retail, hospitality, and residential offerings while stimulating job creation, tourism, and investor confidence,' said Mpono. 'Durban's future lies in bold, integrated precincts that attract both local and international capital. Oceans Umhlanga exemplifies that.'
He added that the precinct's success is not an isolated one but a multiplier for surrounding communities. 'Our partnerships with leading brands and our commitment to working with government, local businesses, and community stakeholders ensure that the precinct is not an isolated success but a multiplier for inclusive economic growth.'
Despite the tough economic climate, Mpono said the project has remained on track. 'The current economic climate, including rising interest rates and construction costs, has required us to be more agile and strategic, but it has not slowed our commitment to Oceans Umhlanga.
'We've adapted by sequencing phases responsibly and managing costs efficiently, all while maintaining the premium quality and vision of the precinct.'
Economist Dawie Roodt said developments of this scale can have a major impact on regional economies. 'It will be good for the economy of KZN, especially in that specific region. And it will also be good for sentiment,' he said.
'If people invest so much money, it must be a good place to be, and that will attract other investments as well.' Roodt added that the project would likely improve investor confidence. 'Certainly, it's good for perception and improvement in confidence as well.'
The Oceans Umhlanga precinct, which includes the already operational Oceans Mall and Radisson Blu Hotel, has so far created over 25 000 jobs during construction, many filled by residents from nearby communities such as KwaMashu, Inanda, and Ntuzuma.
The North Tower, which officially launched on Friday, offers 258 luxury apartments with ocean views, direct mall access, and high-end lifestyle amenities.
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