Capital Hotels Expands Its Reach at Iconic R4bn Pearls of Umhlanga Development

Joburg-based Capital Hotels Apartments & Resorts is continuing its successful partnership with the Pearls of Umhlanga project, expanding its presence with the final phase, Pearls Shore. This follows the development’s initial luxury towers, built over 15 years, and comes as the real estate market in Umhlanga, Durban, shows no signs of slowing down.

The Pearls Shore phase, worth R200 million, adds 66 new hotel units, boosting the group’s hotel operations in the region. The expansion brings the total number of hotel rooms at The Capital Pearls to 200 by May. According to Marc Wachsberger, CEO of Capital Hotels, the move reflects a strategy of capitalizing on the sustained demand for hotel rooms in the area, particularly given the success of earlier phases of Pearls of Umhlanga, which has consistently maintained a high occupancy rate of 90%.

“We’ve been running at near full capacity for over a decade, and it made sense to expand rather than look for a new location,” Wachsberger explained. The Capital Hotels group has seen substantial capital appreciation from the earlier phases, and the group anticipates similar returns with Pearls Shore.

The Pearls of Umhlanga development, with its luxury apartments, penthouses, and the on-site Pearls Mall, represents a landmark R4 billion investment. The final phase of the project culminates over 20 years of development, transforming the Umhlanga beachfront into a prominent hub for both residents and visitors.

The Vision for Pearls Shore and Umhlanga’s Future

Pearls Shore, located on the northern end of the development, might be smaller in scale compared to its towering predecessors—Pearl Sky (37 floors) and Pearl Dawn (31 floors)—but its completion marks a significant milestone in the Pearls of Umhlanga’s evolution. The entire project now includes over 760 apartments and luxury penthouses, with the new hotel rooms poised to serve as a luxury offering for both locals and tourists.

Singh, a major shareholder of Pearls of Umhlanga Development, spoke highly of the successful partnership with Capital Hotels: “We’re thrilled to see The Capital group expand their footprint at the Pearls. It has been a highly successful collaboration over the years, and we’re confident that Pearls Shore will continue to attract investors and tourists alike.”

In addition to the hotel expansion, 44 of the final 66 units are being sold under a sale-and-leaseback model, ensuring investors continue to benefit from the growing demand for accommodation in Umhlanga, a popular destination for business and leisure travel.

A Thriving Investment Destination

With significant demand for hotel rooms in Umhlanga and continued capital appreciation, the Pearls development stands as one of South Africa’s largest and most successful property ventures. As more companies, including Southern Sun Hotels, eye opportunities for expansion in the area, the future of Pearls of Umhlanga remains bright.

For anyone looking to invest in Umhlanga’s booming real estate and hospitality market, Pearls Shore offers promising prospects.

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