Southern Sun says stronger room demand and higher rates lifted revenue in the six months to September, with headline earnings per share expected to rise by between 35% and 44%. The figures remain estimates ahead of the group’s interim results on 18 November.

The JSE-listed hotel group said overall occupancy increased to 61.8% from 59.1% in the comparable six-month period, while average room rates rose by 9%.

That combination drove total revenue growth of 12%, according to a trading statement released on the Stock Exchange News Service on 12 November. Revenue from Southern Sun’s South African portfolio increased by 10%, while offshore revenue rose by 55%.

Costs rose more slowly than revenue

Southern Sun said operating expenses increased by 8%, below the 12% rise in revenue. The company nevertheless highlighted above-inflation cost pressure from information technology, utilities, property rates and commissions paid to online travel agents.

Net finance costs, excluding finance costs arising from IFRS 16 lease accounting, fell by 67%. The group attributed that decline to the settlement of US dollar-denominated debt and continued strong cash generation.

Earnings ranges point higher

Southern Sun expects earnings per share for the six months ended 30 September 2026 to be between 32.1 cents and 34.1 cents. That would be 31% to 39% above the 24.5 cents reported for the comparable period.

Headline earnings per share are expected at 33.6 cents to 35.6 cents, an increase of 35% to 44% from 24.8 cents.

Adjusted headline earnings per share are also expected at 33.6 cents to 35.6 cents. That represents expected growth of 35% to 43% from the previous period’s 24.9 cents.

These are company estimates rather than final reported results. Southern Sun said the financial information underlying the trading statement had not been reviewed or reported on by its external auditors.

What investors should watch next

The company is scheduled to publish its interim financial results on Wednesday, 18 November 2026, followed by an investor presentation at 11:00.

The full results should provide more detail on the split between occupancy and pricing, the contribution from South African and offshore properties, margins, cash generation and the sustainability of the lower finance-cost base.

For now, the trading statement shows a hospitality group filling more rooms at higher average rates while containing operating-cost growth below revenue growth. It does not yet provide the complete income statement, balance sheet or cash-flow detail needed for a full assessment of the period.

Sources and reporting limits

Prepared on 13 November 2026. The earnings figures are company estimates and have not been reviewed or reported on by Southern Sun’s external auditors. Featured image is an editorial illustration, not a photograph of a named property.

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