Sun International climbs out of the valley to bet on expansion

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In its first major capacity expansion at Sun City in 17 years, Sun International is investing nearly R300m to accommodate up to 400 additional people at the iconic resort’s Vacation Club complex.

The move is part of the JSE-listed gaming, casino and hotel group’s strategy to improve existing assets through expansion or additions as it positions itself to “remain the number one leisure and conference destination in SA” after the lifting of Covid-19 restrictions.

The group is also planning to significantly expand its online gaming brand SunBet to increase its market share in SA and the rest of Africa.

In an interview with Business Times after the release of results for the six months ended June, CEO Anthony Leeming said the addition of 58 three- and four-bedroom units at Vacation Club at a cost of R295m was expected to be completed by the end of next year. The units form part of the club's third phase.

The well-known Vacation Club, where members can share holidays at specific properties on a long-term basis, was launched in 1991, with the introduction of the second phase taking place in 2005.

Explaining how it worked, Leeming said members bought a five- or 10-year right for a unit for “an off-peak or peak period”, giving them the right to use the unit for that period, while paying annual levies.

“And then at end of the period it reverts back to Sun International and we resell it. The good thing about it is it is always in good shape. We always reinvest back into the product and keep it at the highest standards.”

Leeming said because Vacation Club offered clients full access to Sun City, it had proved “very popular” and helped drive activity in the complex’s restaurants, casino and golf course.

The latest development comes as the group undertakes a major refurbishment of The Palace, which Leeming says is the most significant upgrade at the five-star hotel in 30 years.

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