The imminent launch of the R750 million Radisson Serviced Apartments Umhlanga development, near Gateway Theatre of Shopping, signals growing confidence in KwaZulu-Natal (KZN) as a long-term investment destination.
Durban-based Avoca Developments is behind the project and has roped in international hotels giant Radisson Hotel Group, which will open its first serviced apartments offering in SA at the property.
This is the latest development that follows a wave of announcements in KZN that suggest the province is fast becoming a new hub for the hospitality sector in SA.
Club Med is soon to open its R2 billion development on the North Coast; Southern Sun is expected to open a new hotel at the R1.5 billion South Tower of Oceans Umhlanga in late 2027; and there’s the R1 billion Radisson Blu Hotel (also part of Oceans Umhlanga) backed by businessman Vivian Reddy, which opened for business in 2022.
Earlier this month, Italian designer Tonino Lamborghini announced a partnership with Zimbali Lakes Resort for the future development of Tonino Lamborghini Suites and Residences Zimbali Lakes, a planned luxury hotel and branded residential offering on the KwaZulu-Natal North Coast, about 40km from Durban.
With a projected sell-out value of approximately R1 billion, the development is set to further strengthen the region’s growing reputation as a destination for international hospitality brands, luxury investment and high-end coastal living.
The new Radisson Serviced Apartments property in Umhlanga Ridge, comprising 183 units, is the next major development attached to the iconic Radisson name.
For phase one and the initial limited release of 40 units into the market, it is an investment opportunity with an expected five-year net yield up to 12.7% with unit prices starting from R1.75 million.
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Radisson will operate and manage the development, supported by its global hospitality platform and client database of more than 20 million Radisson Rewards members worldwide.
This reach is expected to help drive occupancy, with comparable developments in Cape Town and KwaZulu-Natal indicating potential occupancy levels of approximately 80%.
Andrew McLachlan, founder of Develop Hotels Inc, an owner-side hotel development firm, has been appointed by Avoca Developments as Hotel Development Advisor for the project. He brings more than 35 years’ hospitality experience, including senior leadership roles with Radisson and hotel development projects across more than 40 countries.
He sees serviced apartments as the fastest-growing segment in the industry, and KZN as the next growth hub for hospitality in SA.
The line between living and travelling has blurred, and that’s why serviced apartments are the fastest-growing segment in global hospitality.
They offer the comfort and functionality of a home with the services of a branded hotel, making them ideal for extended stays, families, business travellers, digital nomads and the growing b-leisure market.
McLachlan notes that serviced apartments outperformed other segments during Covid due to the flexibility and in-room cooking options. Similar trends were seen in Dubai during the recent Gulf crisis, where longer-stay apartments fared better than traditional hotels.
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Mixed-use development
Of the 183 serviced apartments in the new Radisson-branded development, 40 will be offered for sale in Phase 1, with the launch date to the public set for 15 August 2026.
The unit prices start at R1.75 million for a 29m² studio, and R2.41 million for 39m² one-bed units with open-plan lounge, kitchen and dining room.
The units are sectional title, meaning no transfer duty is payable on acquisition. There are also penthouses that will become available at a later stage.
Radisson Serviced Apartments Umhlanga will be a mixed-use development located 10 minutes from King Shaka International Airport, five minutes from the Umhlanga Rocks beachfront, and a stone’s throw away from Gateway Theatre of Shopping.
Owners automatically qualify for Radisson Rewards Gold status, giving them access to preferential member rates, exclusive travel benefits, enhanced rewards and recognition, and a range of privileges across Radisson Hotel Group’s 10 distinctive brands and portfolio of more than 1 500 hotels in over 100 countries.
Gold members also enjoy additional benefits, including room upgrades where available and dining discounts at participating hotels.
Chris Horn, director of Avoca Developments, explains their decision to partner with Radisson: “Our previous development in Umhlanga involved the construction of about 230 residential units. From that experience, we saw the potential.
“More than half of the buyers got involved in Airbnb and we could see the yields they were making, and that prompted us to look for an international brand with global reach and experience in this kind of development, which goes by various names: extended stay, aparthotels, serviced apartments.”
He adds: “There is strong demand for this product in KZN because of the flexibility of having fully-furnished luxury apartments with all the conveniences of a hotel, such as restaurants, conference rooms, concierge, pool and bar, all designed and operated to Radisson’s meticulous standards.”
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Why Umhlanga?
The location in Umhlanga Ridge is seen as one of the development’s key strengths.
While Cape Town has attracted significant hospitality investment over the past decade, McLachlan believes Umhlanga represents one of South Africa’s most compelling growth markets, supported by a diverse mix of corporate, leisure, entertainment and regional demand.
“Cape Town has become the Monaco of Africa in terms of property values and international appeal. We believe Umhlanga and the KZN North Coast is now South Africa’s next major hospitality growth story,” he says.
“Compared to Cape Town, Umhlanga still offers excellent value. It enjoys both corporate and leisure demand, so a seven-day-a-week business with no downturn during school holiday or long weekends. Leisure guests are prepared to spend more on hotel accommodation than corporates. The Umhlanga node showed to be remarkably resilient leading South Africa’s hospitality recovery following Covid,” says McLachlan.
Horn says Radisson Serviced Apartments Umhlanga is a lifestyle destination and investment.
“People see this as a lifestyle investment, with someone taking care of their apartment for them. You get 30 days a year access to a unit of the same size and standard. For the other 11 months, the unit is rented out.”
The development reflects a global trend toward branded and managed serviced apartments that combine the convenience of hotel services with the flexibility of self-catering accommodation.
For KwaZulu-Natal, it strengthens Umhlanga’s position as a premier mixed-use precinct with walkability to shopping, restaurants, beaches, and business hubs.
The Radisson Serviced Apartments Umhlanga is scheduled to open in 2029. Investors can register interest at www.radissonapartments.co.za ahead of the public launch on 15 August 2026.
Brought to you by Avoca Developments.
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