How much money Sun City, the Maslow, and Table Bay Hotel make

Sun International, which operates well-known hotels like Sun City, the Maslow Sandton and Table Bay Hotel, revealed how much money each hotel makes.

Sun International recently released its Integrated Annual Report for the 2023 financial year.

The report revealed that its resorts and hotels had an exceptional year with strong growth in income and a significant improvement in the adjusted EBITDA margin.

This follows the significant work done on the company’s cost base. Total resort and hotel revenue was up 17.4% to R3.0 billion in the prior year. 

Overall, adjusted EBITDA of R705 million was achieved, a significant improvement from the R555 million in the prior year. 

The adjusted EBITDA margin of 23.3% reflects a substantial improvement from the 21.6% achieved in the prior year.

Domestic leisure, conferencing and sports and events revenues continued to grow while its international leisure business recovered strongly during the year. 

Within the segment, rooms and food and beverage income achieved exceptional growth, increasing 28.9% year-on-year. 

Below is an overview of the performance of Sun City, the Maslow Sandton, and Table Bay Hotel.

Sun City – Income of R1.8 billion

Sun City Resort is located in North West Province and officially opened on 7 December 1979.

In the 2023 financial year, the company said Sun City successfully executed its operational turnaround plan, resulting in a 40% improvement in EBITDA compared to the prior year. 

The resort achieved an income of R1.88 billion compared to R1.64 billion in 2022.

Its adjusted EBITDA came in at R364 million, significantly up from R260 million the previous year.

In 2023, the Sun City conferencing facilities were awarded a five-star grading and achieved 22% higher revenues comparatively. 

The resort’s occupancy also closed the year at 67%, up from 61% in 2022, with an average room rate growth of 13% on the prior year. 

In terms of gaming revenue, slots performance remained flat compared to the prior year, while tables experienced significant growth of 24% over 2022.

The Palace African suite refurbishment was completed in 2023, and The Palace recorded a 19% growth in average room rate following the refurbishment completed in 2022. 

Following a fire at the resort’s Cabanas Hotel in 2023, the company received insurance proceeds of R24.8 million. 

“The Sun City team demonstrated resilience and exceptional teamwork during this period, minimising disruption to guests,” the company said. 

“Employee engagement was a strategic priority, and positive results from the employee engagement survey highlight the success of various initiatives in this regard.” 

Another key focus area at Sun City in 2023 was the addition of new restaurants and entertainment facilities. 

“Additional retail opportunities, including the addition of padel courts, are being pursued,” the company said. 

“Sun City continues to evolve and invest in enhancing its facilities and offerings for an exceptional guest experience.”

  • Income: R1.88 billion
  • Adjusted EBITDA: R364 million

The Maslow Sandton – Income of R149 million

The Maslow Hotel is located in Sandton and opened in January 2013 following an extensive refurbishment.

In the 2023 financial year, the Maslow Sandton’s income was R149 million, up from R120 million in 2022.

Its adjusted EBITDA also rose significantly from R6 million in 2022 to R13 million in 2023.

The hotel’s occupancies increased by 7.8% to 62.6%, largely due to a new airline contract and an improvement in corporate demand and conferencing.

The Maslow Sandton also maintained its reputation as one of the top hotels in Sandton. 

While the hotel’s EBITDA recorded a substantial improvement, diesel costs impacted profits by R4.7 million. 

The installation of a R12 million battery solution will become operational in 2024 and is expected to mitigate diesel costs, providing a more sustainable and cost-effective solution for the hotel going forward.

  • Income: R149 million
  • Adjusted EBITDA: R13 million

Table Bay Hotel – Income of R476 million

The Table Bay Hotel is located at the Victoria & Alfred Waterfront in Cape Town and was opened in May 1997 by former South African president Nelson Mandela.

The Table Bay Hotel experienced an exceptional year in 2023, benefiting from a robust recovery in international travel to Cape Town and capitalising on high customer demand amid reduced inventory across its competitor hotels. 

A focus on rate growth while maintaining occupancy levels resulted in a 62% growth in revenue per available room compared to 2022, with margin improvement across the business.

Its income grew from R308 million in 2022 to R476 million in 2023. Adjusted EBITDA rose from R90 million to R135 million.

The hotel also achieved an exceptional occupancy rate of 72%

The Table Bay Hotel is set to close on 1 March 2025 at the end of its current lease for a major refurbishment and is planned to re-open in December 2025 as an internationally branded hotel managed and operated by Sun International. 

The V&A Waterfront, as the owner of the hotel, will be responsible for the investment in the hotel refurbishment.

  • Income: R476 million
  • Adjusted EBITDA: R135 million