African American Properties Hotel Pty Ltd, the owner of the Hilton Durban, has formally ended its agreement with Hilton Hotels & Resorts, removing the globally recognised brand from the property.
Source: Durban Tourism.
This decision effectively ends nearly three decades of Hilton management at the landmark hotel located in Durban’s central business district, adjacent to the Inkosi Albert Luthuli International Convention Centre (ICC).
Sources familiar with the deal, which was finalised on Thursday, 5 February 2026, indicate that the termination was driven by strategic considerations from the property owner, though the full financial and contractual terms have not been disclosed.
Analysts suggest that factors may include portfolio repositioning, brand alignment, and the potential for rebranding or redevelopment to capture higher returns from corporate and leisure markets.
Future ownership strategy
Legal experts point out that the property’s exit from Hilton’s portfolio does not automatically affect ownership; rather, it redefines the asset’s market positioning, allowing African American Properties to negotiate new management contracts or explore alternative uses. The financial terms of the separation, including potential termination fees or brand royalties, have not been made public.
For now, the Hilton Durban’s operational status is in flux, and the owner has yet to announce a clear plan for the property’s next phase.
Observers in the commercial property and investment space are watching closely, as the outcome may serve as a case study in hotel asset management and strategic repositioning in South Africa’s urban property markets.
