The closure of the Hilton Hotel in Durban could impact the eThekwini Municipality's World Trade Centre licence. The hotel has now been rebranded as the Royal Majestic Durban.
Image: Tumi Pakkies / Independent Newspapers
The closure and rebranding of the Hilton Hotel in Durban could impact the eThekwini Municipality’s World Trade Centre Association (WTCA) licence.
In July 2025, Durban became the first South African city to join the World Trade Centre Association (WTCA). The city was granted a licence designating the Inkosi Albert Luthuli International Convention Centre (Durban ICC) as the home of WTC Durban.
On February 5, 2026, African American Properties Hotel Pty, the owning company of Hilton Durban, unilaterally terminated its management agreement with Hilton. The hotel has now been rebranded as Royal Majestic Durban. Hilton previously managed the building, while Royal Majestic has always been the owner.
The concerns were raised in an Audit Risk Committee (ARC) report for the second quarter of the 2025/26 financial year, ending December 31, 2025.
Siboniso Shabalala, former chairperson of ARC, stated that the recent closure of the Hilton Hotel significantly impacted the centre's revenue because customers seek an all-in-one package of the convention centre and accommodation when booking conferences and events.
“This may also impact the World Trade Centre licence. Arrangements are being made with Southern Sun to utilise the beachfront 5-star hotels as alternatives. The committee also raised that if the current Hilton brand has not survived, what are the chances of rebranding succeeding, to which management indicated that a similar model has been operating in Johannesburg and Port Elizabeth, and it is hopeful that the same will hold for Durban,” he stated in the report.
Also contained in the ARC document were the Enterprise Risk Management (ERM) reports for quarter two of 2025/26, where key areas were raised and discussed, including the attractiveness of Durban as a destination: the inadequacy of hotel accommodation, the Hilton closure, and safety and security matters around the precinct have a negative impact on the Durban ICC entity's operations in securing events.
In the report, the safety and security risk management stated that they were cognisant of the matters around the precinct and are working with relevant stakeholders to ensure a safe environment.
The WTC committee, composed of various stakeholders, has been established to ensure licensing requirements are met. This provides assurance that some geopolitical risks will be considered and analysed.
eThekwini City Manager Musa Mbhele said a similar model operates in Johannesburg and Port Elizabeth, and he is hopeful that the same will hold for Durban.
Regarding the WTCA, Durban joins an expansive global network of over 300 WTCs across nearly 100 countries, including major global hubs such as New York, Tokyo, Nairobi, and Amsterdam.
The prestigious licensing grants Durban exclusive rights to the WTC brand and access to an international ecosystem of more than one million affiliated companies.
The plans for WTC Durban will unfold in phases, commencing with brand activation and feasibility studies, followed by the necessary infrastructure roll-out to support its ambitious goals.
Mbhele said the Durban ICC is a city-owned entity renowned for its high standards of service excellence and has successfully staged some of the world's most prestigious and complex events.
He said the ICC is perfectly positioned to hold the WTCA licence to maintain its position as the multi-award-winning centre for Africa’s leading meetings and conferences. The process cost the municipality an estimated R5.5 million in the 2024/25 financial year.