As the tourism pie in South Africa grows, so too does the need for quality accommodation. Since the birth of the ICC and Hilton hotel in 1997, Durban has seen little hotel development. Besides the new hotels around the Florida road precinct; Quarters, The Benjamin and the latest Florida Park Hotel, there has been little else to add to the city's hotel portfolio, and was a clear sign of stagnant growth in the hospitality industry.

However, with the building boom that has engulfed the city at both the Point and Umhlanga, the knock on effect has lead to increased interest in developing the hotel market.

At present, Durban has the highest occupancy rates of any city in South Africa. And much of this demand can be attributed to the flourishing growth of the ICC, the improved tourist product with the arrival of uShaka Marine World and hence that more international tourists are including Durban on their South African holiday schedule. But the main reason is that Durban’s supply of hotel rooms has not grown significantly over the past years, unlike the massive boom in Cape Town, and to a lesser degree in Johannesburg. With this lack of development, there is now a built up demand to increase room numbers, and developers are jumping at the opportunity.

But where is all this hotel development going to occur? Along the beachfront as has always been the case? Well the short answer is no, but that does not mean that the area is excluded from the plans. Most of the new hotel development is clustered around the Point, but other significant precincts are also developing, but I will get to them later.

The Point, known for years as the seedy underbelly of the city, is under going a metamorphosis. Historic buildings are being renovated, and new modern ones are going up alongside them. Over 1200 apartments are under construction and 70 000m2 of retail and commercial space is coming on stream by the end of 2006, and amazingly 60 000m2 of this space is pre-let.

The Point is to become the leading tourist zone of the city, the new home of late night bars, clubs and restaurants. As such, a great demand for hotel accommodation is predicted, and developers are more than willing to meet this demand. There are 5 confirmed hotel projects for the Point, all centred on Timeball Square (the heart of the point development).

Quay WestThe QuayWEST hotel is an 11 storey 4 Star 22 key suite hotel and is part of the Quays development, to be managed by Three Cities. Across the canal is The Sails Hotel; a 14 storey 4 star 85 key hotel to be managed by the Legacy Hotel group (they also manage the Michelangelo in Johannesburg and the Portswood in Cape Town). Both these hotels are under construction and both will tap into the additional rooms available in the residential developments.

On the other side of Timeball Square, lies Point Place, a 25 key hotel in 2 converted Victorian houses, and part of the Dockpoint development, which entail the modernisation of 29 Victorian homes, which are now on sale from R3,6m to R8m.

Across the canal from QuayWEST and Point Place, lies the Point’s ultimate hotel. The 5 star, 150 key Moorings Hotel, to be managed by an unnamed international operator. This hotel will have canal frontage on 3 sides, wrap around balconies, and its own private “marina” for 6 yachts. On the roof level will be Durban’s second revolving restaurant, with views across the entire point development.

Suncoast

With the development of Suncoast Casino, the northern part of the beachfront has once again sprung to life. With its cinemas, bars, club, restaurants and gambling facilities, it has become a hive of activity 24/7. The fact that it also includes a superb beach, with grassed embankments, complimentary loungers, umbrellas and the option of ordering cocktails that can be delivered to where you are catching a tan, makes this beach a deserved holder of one of the places in the Top 3 beaches in South Africa. The perfect compliment is the beach resort hotel, which is currently in the final stages of construction. It will be a 168 key 4 star hotel operated by Southern Sun. In a later phase, Suncoast may possibly develop a second 3 star hotel on the northern side of the complex, which will also have direct beach access.

Adjacent to Suncoast Casino lies Anant Singh’s Filmcity complex, which will include film studios, retail and tourism aspects along the lines of Universal Studio’s in LA. On top of this, Taj Hotels and Resorts will develop a 200 key 5 star hotel tower. Once complete, this node will have a tantalising 24 hour pleasure offering.

Beachfront

While Suncoast to the north, and the Point to the south maybe getting all the attention, the central core of the beachfront has not been ignored by the council. They plan to release the present Pavilion site on North Beach for development. The site will be divided up into 3 portions. A condition of development is that at least one site must be a hotel, but that all sites must contain restaurants and retail on the ground floor, so as to improve the beachfronts offering in this regard, which at present it is sadly lacking. They will form a retail boulevard and the existing road that runs in front of the site will be rerouted behind it, so that the zone is pedestrian friendly and attains a café society vibe, along the lines of Miami’s South Beach. This project has a completion clause with the sites, that all development must be complete before the 2010 soccer world cup. Also, all development must be greater than 20 floors.

Holiday Inn, GatewayUmhlanga

As the saying goes, “when it rains, it pours”. This statement is true in relation to the development underway in Durban. As commercial activities have moved progressively north in the last 10 years, the once quiet “village” of Umhlanga has undergone a transformation of its own. Over R12billion has been spent on commercial, retail and residential development in the area in this period, and which has justifiably given it the title of South Africa’s fastest growing region. As such property prices have risen, up by some 800% since 1994. Today the entry price for the area is R1,5m with the average price at R3,8m. Beachfront property is retailing at 35 000/m2, expensive, but lower than the 50 000+/m2 in Clifton, Cape Town.

The company behind this massive development is Moreland, the property arm of the Tongaat Hulett group, the largest private land owner in South Africa. Their vision for the Umhlanga region has spawned the development of the Umhlanga Ridge New Town Centre, a new city following the principles of the new urbanist philosophy, but tailored to the needs of Durban’s climate. This has lead leading figures in the industry to term the development “new Durbanism”.

At present there are 1800 apartments in various stages of completion, and a further 1200 have been approved, yet not released to the public. Couple this with 30 000m2 of commercial space and 25 000m2 of retail space across from the massive 145 000m2 Gateway Theatre of Shopping, and one can grasp the scale of the development.

Royal PalmPlans for the town centre include 11 000 units, 250 000m2 of commercial space and 4 hotels. City Lodge have already developed their flagship hotel opposite Gateway on Palm Boulevard. The second site is opposite the new town gardens and construction is to commence shortly. It is a 5 star 110 key hotel known as The Palms to be operated by the Legacy group (also operators for the Sails hotel at the point). Also along the Palm Boulevard, is Royal Palm, a 140 key 4 star hotel to be managed by the Three Cities Group. This will be a suite hotel and will tie in with the 1on1 convention centre in Gateway that is also run by the Three Cities Group. Adjacent to the City Lodge is Sun Square, a 120 key 3 star hotel which forms part of the Southern Sun group. The latest release is Park Avenue, a 110 key 5 Star hotel to be managed by Sheraton, opposite the new town gardens in the area known as Parkside.

Umhlanga Triangle

This is the most prime undeveloped real estate in the area, with sweeping views of the city, all the way to the bluff headland. It will comprise 3000 residential units and masses of commercial space along the same “new Durbanism” design policy.

A hotel contract is in the final stages of being signed with the Hyatt Group to develop a 5 star 250 key hotel on Umhlanga Rocks Drive opposite the Horizon Views apartment complex. The news that is of greatest interest however, is the recent announcement of the Notae Resorts complex opposite the Umhlanga Hospital. It comprises a R1,8 billion 5 star 150 key Marriot Hotel, apartments, recording studios, a theatre, commercial space and a retail boulevard that will house Gucci, Cartier, Louis Vuitton and Armani.

Umhloti

Palm BoulevardWith the development of the Sibaya Casino and link roads, many hectares of land has been opened up, and Moreland have stated that they intend to develop 5 hotel sites in this area, excluding those that Sibaya are developing.

Sibaya opened with Sibaya Lodge, a 5 star 24 room hotel. Their second hotel development is under construction and it is planned to open in November 2006. It will consist of 150 rooms in a 3 star format.

The City Lodge group are in the final stages of deciding whether they will develop a city lodge and courtyard suite hotel in the Sibaya node and are in consultations with Moreland.

With the mass of development under construction or planned in the hotel sector, Durban now faces the possibility of an over supply in hotel accommodation, but the developers do not believe that this will be the case. They believe that due to the phased nature of the developments, and Durban’s growing status, that all the development will be needed beyond the 2010 soccer world cup. One can only hope that this will be the case. One thing is for certain, Durban will be seeing many cranes towering over the skyline for many many years to come.