Property

G20 boost for iconic 56-year-old company in South Africa

Luke Fraser

 ·19 Nov 2025

Southern Sun expects the upcoming G20 Summit to be a significant boost for the company’s occupancy levels. 

Founded in 1969, Southern Sun was established by hotelier Sol Kerzner and South African Breweries, and has since become one of the largest hotel chains in the country.

The group delivered a resilient performance in the six months ended 30 September 2025, achieving income growth of 5% to R3.1 billion for the year.

This was primarily driven by strong domestic trading, where South African operations rose 8% to R3.0 billion. This performance offset the 29% decline in offshore revenue to R147 million. 

The group’s offshore operations were impacted by the temporary closure of Paradise Sun for refurbishment and weaker trading in Maputo and Tanzania.

South African hotels achieved an occupancy rate of 60.6% (2024: 59.4%) and a 6% increase in average room rates (ARR) to R1,369, lifting room revenue to R2.0 billion (2024: R1.8 billion). 

Demand was supported by conferencing, events, and group travel in Gauteng and the Western Cape. 

Transient corporate and government travel was subdued due to delayed national budget approvals and the timing of Easter. 

Southern Sun noted that recovery in corporate and government travel is ongoing and is expected to be aided by the upcoming G20 and B20 conferences. 

Over the reporting period, the group faced higher-than-expected cost pressures, which weighed on margins, primarily driven by increases in IT, utilities and channel costs. 

Operating expenses increased by 7% compared to the prior period, reflecting a 23% (R10 million) rise in IT costs, an 11% increase in utility costs, and a 12% rise in channel costs. 

These cost pressures resulted in the company’s profit for the period remaining flat at R322 million. 

The company is also increasing its total number of issued shares as part of its employees participating in the Southern Sun Share Appreciation Rights Plan. 

Although share buybacks limited the increase in the shares, the group’s basic earnings dropped slightly to 24.5 cents per share.