How much money Sun City makes in a month

Sun City rakes in an estimated R150.67 million a month as the resort continues to go from strength to strength.

Sun City-owner Sun International recently released its results for the first six months of the year, which revealed strong growth in its resorts and hotels segment.

Overall, the company’s income was up 5% to R6 billion in the six-month period. R1.51 billion of that came from its resorts and hotels segment.

The company said the strong performance in this segment was supported by resilient domestic leisure, conferencing and a recovery in international travel, despite the impact of South Africa’s May general elections.

These positive results come after years of financial decline for the company.

The hotel group had big revenue swings over the past eight years. It increased from R9.97 billion in 2014 to R16.6 billion in 2018, with average annual revenue growth of 13.9%.

However, since 2019, the group has seen its revenue slip to a low of R6.01 billion in 2020. It increased to R7.8 billion in 2021, but recovery has been slow.

Today, the company is on the rebound, with most of its segments growing income and earnings. Resorts and hotels form a large part of the company’s earnings, with Sun City as its crown jewel.

Sun City is an important asset for the group and accounts for an estimated 13% of Sun International’s South African operations by revenue. It is an exceptional resort, but it struggled to grow revenue for several years.

The resort has been losing business and was severely affected by the 2020 lockdowns. Its revenue fell from R1.6 billion in 2019 to R699 million in 2020.

It showed some recovery in 2021 but was still far off from its 2017 revenue of R1.8 billion.

However, in recent years, the resort has been on the rebound, with its 2023 revenue coming in at R1.88 billion.

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

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. 

Sun International’s latest results revealed that Sun City generated R904 million in income for the first six months of the year. This equates to R150.67 million a month.

Sun City also achieved a record-adjusted EBITDA of R193 million.

The company said it has made targeted investments to maintain its properties and improve customer experience.

Sun City is currently undergoing refurbishments set to cost R350 million, which should be completed in mid-2026.

The company is also rolling out alternative energy solutions across all its properties, including Sun City.

In its latest results, the company said its Sun City 1.4-megawatt PV solution is on track to deliver energy savings of approximately R3.5 million per annum.

It has also commissioned additional PV installations of 0.85 MW on the Sun City Hotel and Palace Hotel rooftops. 

Sun International’s other resorts and hotels also performed well in the first six months of the year.

The Wild Coast Sun, based in the Eastern Cape, generated income of R282 million and adjusted EBITDA of 50 million, a 13% and 47% increase, respectively.

The Table Bay Hotel saw its income rise by 16% to R251 million and adjusted EBITDA rise 13% to R95 million.

The Maslow Sandton’s income was up 12% to R76 million and adjusted EBITDA up 14% to R8 million.