Southern Sun reported a 10% increase in South African revenue for the five months to August 31 2026, with the group citing stronger demand linked partly to the recent All Black tour.
The hotel group issued a trading statement on Wednesday ahead of its annual general meeting on September 15, and the 2026 RMB Morgan Stanley Investor Conference on 16 and 17 September.
Southern Sun’s share price rose 1.59% to R10.26 on the JSE on Wednesday afternoon. The price was 19.31% higher than a year earlier and 93% above its level three years ago.
The group’s overall occupancy increased to 60.2% from 57.8% in the five months to August 31. Average room rates rose by 9.5%, while total revenue increased by 12%.
Southern Sun directors said its South African operations delivered strong earnings growth, supported by demand for events, groups and conferencing in the Western Cape and Gauteng. Demand was also boosted by Rugby’s Greatest Rivalry, the 2026 All Blacks tour of South Africa, in August.
The directors said there had been “reassuring signs” of growth in groups and conferencing demand in KwaZulu-Natal, driven by sports and associations business.
However, transient travel — particularly domestic leisure travel — remained subdued because of pressure on disposable income and anti-immigration protests affecting travel from the Southern African Development Community.
The group’s South African portfolio includes the Garden Court hotel chain, Sandton Sun and Sandton Towers, Mount Grace Hotel in Magaliesberg and Arabella Golf Estate near Hermanus.
Southern Sun’s offshore business was supported by the reopening of Paradise Sun in the Seychelles, which had been closed for refurbishment during the previous comparative period.
The resort traded strongly after reopening, despite initial disruption caused by the conflict in the Middle East. Trading volumes also increased in Mozambique and Tanzania.
As a result, offshore revenue rose by 54%, according to the group’s directors.
Management said Southern Sun continued to face above-inflation cost pressures, including higher IT costs following system upgrades, increased electricity tariffs, water outages, higher property rates and rising distribution-channel costs.
The group also continued to return cash to shareholders. Since 1 April 2026, shares worth R174 million were repurchased at an average price of R9.98 and a final dividend of R393m was paid for the year ended March 31, 2026.
Several refurbishments are under way, including at Southern Sun Newlands, Hazyview Sun, Mount Grace Hotel & Spa, Birchwood Hotel & OR Tambo Conference Centre, Southern Sun Waterfront and Southern Sun Hyde Park.
Southern Sun expects its earnings per share, headline earnings per share and adjusted headline earnings per share for the six months to September 30, 2026 to be at least 20% higher than in the previous comparative period.
EPS, HEPS and AHEPS were 24.5 cents, 24.8 cents and 24.9 cents respectively in the six months to September 30, 2025.
The group cautioned that its peak trading months are weighted towards the second half of the financial year. The comparative period also included significant events such as the B20 and G20 conferences, resulting in a higher comparative base.
edward.west@nationalmg.co.za
THE NATIONAL