Hospitality companies are optimistic about the current outlook as hotels in SA are steadily showing signs of recovery, with occupancies across the sector rising after the recession and in the aftermath of the slump following the Soccer World Cup in 2010.
"Tsogo Sun's investment in the Southern Sun Elangeni and Maharani complex is a direct response to the substantial investment into the revival of the Durban beachfront promenade by the eThekwini municipality," Tsogo Sun's chief executive Marcel von Aulock said.
One of the main tourist attractions in the area, Durban's Golden Mile stretches from South Beach to the Suncoast Casino and Entertainment World in the north.
The first phase of Tsogo Sun's project, which will be completed in time for the tourism indaba next month, will consist of the refurbishment of the Maharani Tower.
In addition, it will entail new food and beverage offerings within the Elangeni Tower, the rework of the porte cocheres and the renovation of the external building facades.
eThekwini mayor James Nxumalo said the merger of the two hotels was of great significance to the positioning of the Durban beachfront and signalled the confidence of investors in the precinct.
Phase two will see the opening in the third quarter of the year of The Camelot Spa in the Elangeni Tower.
"The historic Raffles area is being transformed into a multi-purpose venue on top of the Maharani Tower, available for conferences, launches, themed evenings and a myriad other events with breathtaking views," Tsogo Sun said.
The final phase will include a refurbishment of the Elangeni rooms and additional public areas.
Also last week, SA's largest unlisted hotel group Protea Hotels, said the Zebula Golf Estate and Spa in the Waterberg region of Limpopo has joined its portfolio.
Protea Hotels has a footprint of more than 120 properties throughout SA and seven African countries, including Zambia, Nigeria, Namibia and Kenya.
Earlier this year, the Protea Hotel Tyger Valley finished building its new multi-purpose conference venue. Protea is also adding a new Protea Hotel Fire and Ice! in Menlyn, Pretoria in the first quarter of next year.
Protea Hospitality Group's chief executive Arthur Gillis said in January that the group had a number of hotels planned for SA. Some of these would be newly built others would be refurbishments of existing properties.
"The improvement in trading conditions was because of an improved business and trade environment as well as a slowdown in the number of hotels being built since 2010," Gillis said.
Meanwhile, City Lodge is in the process of acquiring a site in Pietermaritzburg for the development of a 90-room Road Lodge at a total development cost of about R40m.
Source: Business Day via I-Net Bridge
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