Fedhasa welcomes R1 billion Durban beachfront lease agreement

SOUTHERN Sun Hotels has secured a 50-year lease agreement with eThekwini Municipality, representing a R1 billion investment that will revitalise Durban's iconic beachfront.

Fedhasa hailed this as a strategic development that would boost tourism, create jobs, and reinforce confidence in Durban as a premier destination.

Jaya Naidoo, the General Manager Fedhasa East Coast, said they welcomed the recently concluded 50-year lease agreement as a highly -positive and strategic development for the city of Durban.

"This agreement sends a strong signal of confidence, stability, and long-term commitment to Durban as a premier tourism and investment destination. Long-term certainty enables meaningful capital investment into these iconic beachfront assets, ensuring continued upgrades, improved service standards, and enhanced visitor experiences - all of which strengthen Durban’s overall destination offering.

"Beyond the properties themselves, the benefits extend more broadly to the city. Sustained investment supports job security and job creation, stimulates the local supply chain, and contributes to economic growth across tourism, hospitality, retail, and related services. It also reinforces the Durban beachfront as a key tourism anchor, which is vital for both domestic and international visitor appeal." 

He said Fedhasa East Coast believed that such long-term, investor-friendly arrangements were essential to unlocking further tourism investment, restoring confidence, and positioning Durban as a competitive, well-managed, and future-focused city.

"We remain committed to working closely with the eThekwini Municipality, tourism authorities, and private sector partners to support sustainable tourism growth, strengthen investor confidence, and ensure Durban continues to thrive as a world-class destination." 

In a statement, Gugu Sisilana, the eThekwini Municipality’s spokesperson, said: “The 50-year lease agreement between eThekwini Municipality and Southern Sun Hotels represents a R1 billion investment that will revitalise the Durban beachfront, stimulate economic growth, and create employment opportunities. The new 50-year lease was won by Southern Sun after a fair and transparent bidding process. The award responded to the Request for Proposals from industry issued in November 2023. 

"The lease agreement forms a major part of the Municipality’s Proactive Land Release Strategy and enables the municipality to realise its vision as articulated in the Inner-City Local Area Plan, which aims to protect and enhance the beachfront as a key tourism asset. The redevelopment will strengthen the Golden Mile as a key tourism asset, enhance public spaces, and attract increased visitor numbers while introducing sustainable infrastructure solutions." 

She said this long-term partnership reinforced confidence in Durban’s economy and supported the city’s vision for inclusive growth and urban regeneration.

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