Durban loses its Hilton Hotel as owner severs ties with global hospitality group

Durban will no longer play host to a Hilton Hotel, a premier name in hospitality and business travel, after the company that owns the CBD hotel cut ties with the Hilton group.  

The owners of the property, African American Properties Hotel Pty, cut management ties with the Hilton group this month.

The development has shocked the tourism sector, which said it was still grappling with the decision as it had been sudden.

The sector warned that the Durban CBD is likely to lose out on business travel as the Hilton due to the proximity to the Durban ICC was a popular spot for business travellers.

The Hilton Hotel had been closed for several years following the impact of the Covid-19 pandemic and it only recently started operating again.

An email seen by The Mercury from the hotel owner, addressed to a customer, stated that the management agreement with Hilton had ended and that the “hotel will no longer be managed by Hilton or be part of the Hilton portfolio.”

The Mercury emailed the hotel owner on the available email but had not heard back at the time of publication.

However the Hilton group confirmed the announcement.

A Hilton spokesperson said: “As of 5 February 2026, African American Properties Hotel Pty, the owning company of Hilton Durban, has unilaterally terminated its management agreement with Hilton. This means the hotel is no longer part of the Hilton portfolio and is not available to book via Hilton. We are proud of the legacy of hospitality the hotel has delivered for nearly three decades. Across South Africa, our four properties continue to welcome guests – and we remain committed to the country with another three hotels in the pipeline.”

Brett Tungay, national chairperson of the Federated Hospitality Association of Southern Africa said the association is concerned about the impact this situation would have on the hosting of the Tourism Indaba which takes place in May.

He added, “We still do not know what happened between the hotel owners and Hilton that has led to this situation, as it was very sudden, and we hope to learn a bit more in the coming days.”

“The hotel usually plays a very important role as sometimes the breakfast is hosted there. The Hilton was not a tourism hotel but a business travel hotel attracting high-end clientele. There are similar hotels available in Umhlanga and Durban North, so I believe that business travel would likely revert back to travelling between the CBD and Umhlanga as they had been doing when the Hilton was closed. The CBD will feel an impact, but I believe that it will be minimal. That property (hotel) is in very good condition; therefore, I do not see it being closed for very long,” he said.

EThekwini Municipality councillors also expressed concern about the situation and the possible impact on tourism.

ActionSA councillor Zwakele Mncwango said ActionSA viewed the “disappearance” of the Hilton brand from Durban as a deeply concerning development and a significant blow to the city’s already fragile tourism and investment confidence.

“Globally recognised hotel brands play a critical role in signalling stability, safety, and economic viability to international tourists, conference organisers, and investors. The withdrawal of such a prestigious name sends the opposite message — that Durban is becoming a less attractive destination for high-value tourism and business travel."

Democratic Liberal Congress (DLC) Leader Patrick Pillay said it was sad news, “This will be a major blow to the City's tourism industry, whereby thousands of business tourists literally book into the adjacent hotel out of convenience (due to its proximity) to the ICC conference centre,” said Pillay.

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