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South African hotels and leisure giant Southern Sun reports that it has \u201cnot experienced a material adverse impact\u201d on its local operations from the fallout of the Middle East conflict, which has affected hotel demand and tourist flows to Gulf nations like Dubai and Qatar, as well as to destinations such as the Seychelles.<\/p>\n
It highlighted this in its latest full-year results to the end of March 2026, released on Tuesday, which showed a strong performance on the back of the G20 Leaders Summit and related events in SA, plus better performance from its Durban beachfront and broader KwaZulu-Natal portfolio. The Cape Town market remained robust.<\/p>\n
Read:
Gulf airspace disruptions from Iran war hits tourism to Seychelles
Dubai\u2019s bankers and traders return to the city, but \u2026<\/p>\n
\u201cThe group delivered a strong performance in the 2026 financial year. Trading momentum increased in the second half of the year, with broad-based improvements across all regions underpinned by major international conferences and events, including the G20 in Gauteng and improved transient demand in South Africa,\u201d Southern Sun said in its results filing on the JSE.<\/p>\n
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\u201cOffshore hotels benefited in the second half of the year with the successful reopening of Paradise Sun [in Seychelles], which experienced strong demand until the impact of the Middle East war in March 2026 and marginal improvements in trading in Mozambique. To date, the group has not experienced a material adverse impact on its South African operations,\u201d it added.<\/p>\n
\u201cBut the impact of increased fuel costs on the SA economy going forward is uncertain,\u201d the group warned.<\/p>\n
Read\/listen:
Inflation hits 4% as fuel shock bites
South Africa wants more \u2018Global South\u2019 tourists
De Lille talks tourism: The boom, African market and tackling xenophobia
Broll scoops two JLL execs for new hospitality division
Tourism optimism lifts Southern Sun to a record high [Sept 2024]<\/p>\n
Southern Sun said it remains well-positioned to withstand a potential downturn.<\/p>\n
\u201cA strong balance sheet supports the funding of development initiatives through existing facilities and operational cash flows. This financial flexibility preserves optionality for shareholder returns, including opportunistic share buybacks or special dividends, while maintaining resilience through the cycle.\u201d<\/p>\n
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The group reported income growth of 9% [to R7.2 billion] for FY2026, with overall hotel occupancy levels increasing 2.1 percentage points to 62.9%. Ebitdar [earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs] surged 12%, to R2.4 billion.<\/p>\n
Southern Sun\u2019s adjusted headline earnings per share jumped 19% to 90.1 cents, which saw its final dividend for the financial year being hiked 20%, to 30c per share.<\/p>\n
The group\u2019s share price firmed around 3%, following the release of its latest results.<\/p>\n
#impact #hotels #Middle #East #conflict #Southern #Sun<\/p>\n","protected":false},"excerpt":{"rendered":"
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