Business

South Africa’s top R14 billion hotel group is making bank

Jonathan Hoyle

 ·12 Nov 2026

Southern Sun anticipates a significant increase in both revenue and earnings for its most recent interim trading period.

In a trading update published on the Stock Exchange News Service (SENS), the company said it expects earnings per share to increase by up to 39%.

The group noted that, for the six months ended 30 September 2026, overall occupancy had increased by between 59.1% and 61.8%.

“For the six months ended 30 September 2026, the Group’s overall occupancy increased from 59.1% to 61.8%, while average room rates increased by 9%,” Southern Sun said.

“This resulted in total revenue growth of 12%, comprising revenue growth of 10% from the South African portfolio and 55% from the offshore segment”.

The group said its operating expenses increased by 8% during the interim period, while some expenses exceeded inflation.

“Operating expense growth was contained to 8%, notwithstanding above-inflationary cost pressures relating to information technology, utilities, property rates and online travel agent commissions,” it said.

The increased revenue from higher occupancy rates has led Southern Sun to forecast higher earnings per share.

The group expects earnings per share to be between 32.1 cents and 34.1 cents, a 31% to 39% increase from the previous interim period.

For Headline Earnings Per Share (HEPS), Southern Sun said it anticipates a range of 33.6 to 35.6 cents, representing a 35% to 44% increase.

Adjusted Headline Earnings Per Share (AHEPS) are expected to rise by a similar amount, between 35% and 43%.

Southern Sun is the largest hospitality group in South Africa, with a market cap of over R14 billion.

It operates 95 hotels and resorts across South Africa, Africa, the Seychelles, and the Middle East.

Its portfolio comprises well-known hospitality properties such as Arabella Hotel, Golf & Spa; the Beverly Hills in uMhlanga; Mount Grace Hotel & Spa; and the Sandton Sun & Towers.

Southern Sun expected earnings per share