Sun International, the prominent gaming, casino, and hotel group listed on the Johannesburg Stock Exchange (JSE), has reported remarkable success in the sales of the first phase of its Sun Vacation Club luxury accommodation project at Sun City.
The development, launched in October 2022, has surpassed expectations, with gross sales reaching R166 million by the end of July.
The total cost of the first phase of the development was R295 million, with R45 million incurred in the 2022 financial year and the balance in 2023.
Exceeding Expectations
Sun International’s Sun Vacation Club development, slated to cost approximately R850 million over the next five years, has far exceeded the company’s sales predictions.
According to Janita Donaldson, Sun Vacation Club Group GM, demand for high-end luxury accommodation was robust, and sales of the four-bedroom villas were sold out by September.
The pace of sales for the three-bedroom villas also outperformed expectations. When reservations opened on October 5, existing Sun Vacation Club members accounted for 22% of bookings, while more than 50% of the four-bedroom villas were booked for the next 12 months on the same day.
Existing members made up 40% of sales, with 60% being new members signing up for the first time.
The Vacation Club currently has 22,000 members, offering options for five to ten years during peak and off-peak periods.
The Lefika Villas
Lefika Villas, the first five-star timeshare offering at the Sun Vacation Club, boasts a clubhouse, restaurants, and other amenities.
The first phase of Lefika Villas includes 58 villas catering to affluent local and international travelers, consisting of 48 three-bedroom and 10 free-standing four-bedroom villas.
The development has come at an opportune time, with unprecedented demand anticipated due to events like the Nedbank Golf Challenge.
The villas are already fully booked for the upcoming Christmas and New Year holidays.
Local Influence
Lefika Villas, which means “stone” in the local Setswana language, pays homage to the nearby stone-walled Itlholanoga heritage site, considered the real Lost City of the greater Sun City resort.
A team of architects and designers spent 18 months on design, construction, and procurement, ensuring a 30% local spend by engaging local subcontractors, service providers, and labor.
Sun City’s Continued Success
Sun City, situated near Rustenburg in North West, remains Sun International’s flagship property, offering hotels, golf courses, a casino, and diverse leisure and entertainment facilities.
The resort has experienced substantial performance gains following operational restructuring and a strong appeal to the South African market.
During the first six months of the year, income rose by 26%, reaching R890 million, while occupancy rates increased from 54% to 63%, with room rates growing nearly 50%.
Domestic conferencing and leisure have made a strong return, boosting revenue, and the casino market is experiencing significant revenue growth.
International travel recovery is anticipated to begin by the end of this year and continue into 2024.
Sun International’s impressive success with the Sun Vacation Club’s luxury accommodation sales at Sun City reflects the strong demand for high-end leisure experiences in the region, boding well for the future of luxury tourism in South Africa.
