Increased activity at the Sandton Convention Centre has boosted the performance of neighbouring hotels, with Liberty Two Degrees' (L2D's) hospitality sector recording a financial performance exceeding expectations.
The owner of the Sandton Convention Centre, Sandton Garden Court, Sandton Sun and Sandton Towers recorded a 6.2% increase in hotel occupancy rates for the financial year ended December 2024, achieving 71.7% occupancy, up from 65.5% in 2023.
In 2024, 154 events were hosted at the Sandton Convention Centre, including 90 conferences, 26 exhibitions and 38 other events such as gala dinners and cocktail functions.
While this was a decline compared to 2023, when the centre hosted 219 events, and 2022, which had 195 events, L2D said conferences continued to have a significant impact on its hospitality portfolio.
CEO José Snyders said the group expects a more positive trajectory this year, with South Africa set to host some of 2025's largest events, including the G20 heads of state summit in November — one of the largest gatherings of world leaders in a single place.
The Sandton Sun is one of three hotels in our portfolio seamlessly connected to the Sandton Convention Centre, Sandton City and Nelson Mandela Square, making it a prime choice for both local and international visitors
— Jonathan Sinden, COO at L2D
The Sandton Sun, which was rebranded from InterContinental Hotel by Southern Sun, was reopened in August 2022, with 557 five-star rooms and suites open to the public.
Jonathan Sinden, COO at L2D, said Sandton Towers remained the most preferred hotel in their portfolio, though all of them were doing well.
“The Sandton Sun is one of three hotels in our portfolio seamlessly connected to the Sandton Convention Centre, Sandton City and Nelson Mandela Square, making it a prime choice for both local and international visitors.”
In 2023, L2D's integrated report showed that Sandton Sun achieved an average occupancy of 51.3%.
According to the company, conferencing and eventing has been showing signs of recovery since 2022. The Mice (meetings, incentives, conferences and exhibitions) and hospitality sectors were among those severely affected by the Covid pandemic.
Globally, the Mice industry is valued at $523.3bn (about R9.8-trillion) with an annual growth rate of 11.5% expected. The local industry was valued at R166bn in 2024.
South Africa has this year secured bids to host 53 international conferences and exhibitions over the next five years, which are expected to pump more than R600m into the economy.
Speaking at a media briefing in February, tourism minister Patricia de Lille said the South African National Conventions Bureau — an agency of South African Tourism tasked with growing the number of international business events in the country — had invested R14.6m on 81 bid submissions that have an economic value exceeding R975m.
With the country hosting the G20 summit in November, a multitude of delegates are expected to make their way to Johannesburg, boosting the local hospitality industry.
Apart from upmarket properties in the Sandton precinct, L2D’s retail portfolio also includes the Eastgate complex and Melrose Arch precinct in Johannesburg, and Umhlanga Ridge Office Park near Durban.
Despite experiencing “moderation in spend” over the December period compared to 2023 in its retail portfolio, the group said the Black Friday period had significantly boosted November’s performance.
“Overall, festive season trading [November and December combined] grew 5.2% year-on-year. The moderate December spend was partly due to fewer weekends compared to 2023,” said Snyders.
Sinden said that with a high demand for space in premium locations, the company had 241 lease renewals and had attracted high-profile brands such as Coricraft, Rochester, Puma, La Parada and JD Sports to Eastgate Shopping Centre, along with UNIQ by Checkers to Sandton City and Midlands Mall.
“We continue to bring fresh retail concepts to our malls, creating dynamic and engaging environments that drive foot traffic and strengthen our competitive edge,” he said.
In the period under review, L2D achieved revenue growth of 4.9% while its trading density for its retail portfolio reached R56,477 per square metre, a 4.5% increase from 2023.
Sinden said the performance was not without its challenges, with the provision of electricity and water by local municipalities posing a significant risk to the effective operation of its shopping centres.
“To mitigate this, L2D has implemented initiatives to reduce reliance on municipal energy and water supplies through our Good Spaces building blocks. We have done this by focusing on efficiency improvements such as upgrading fittings and investing in solar power and rainwater harvesting projects.”
To address ageing infrastructure challenges, Sinden said L2D had undertaken an extensive heating, ventilation and air-conditioning upgrade programme to improve energy efficiency and reduce water consumption.
Commenting on the company's performance, Snyders said it indicated that the business was able to operate under complex environments.
“We have maintained strong financial and operational metrics, despite economic headwinds, underscoring the quality of our assets and our commitment to innovation.”
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