Hotel and resorts group Southern Sun has reported a 20% rise in full-year earnings after trading momentum increased in the second half, with improvements across all regions.The group’s income for the year ended March rose 9% to R7.2bn, driven mainly by robust domestic trading, with South African operations up 10% to R6.8bn.The strong local performance was partly offset by a 4% decline in offshore income to R377m, reflecting the temporary closure of Paradise Sun in the Seychelles for refurbishment in the first half of the year and challenging trading conditions in Mozambique and Tanzania.Attributable earnings were 21% higher at R1.24bn, it said on Wednesday. Headline earnings per share rose to 90.1c from 74.8c a year ago. A dividend of 30c per share was declared, up 20%.The group said trading momentum increased in the second half of the year, with broad-based improvements across all regions underpinned by major international conferences and events including the G20 summit in Gauteng and improved transient demand in South Africa. Offshore hotels benefited in the second half of the year with the successful reopening of Paradise Sun, which experienced strong demand until the positive momentum was interrupted by the outbreak of the war in the Middle East in March and marginal improvements in trading in Mozambique. “A meaningful portion of airlift into the Seychelles originates from the Middle East and has reduced materially since the conflict began on February 28 2026,” the group said.In Mozambique, fuel and US dollar shortages have stifled demand, it said. “To date, the group has not experienced a material adverse impact on its South African operations, but the impact of increased fuel costs on the South African economy going forward is uncertain,” it said.Occupancy rates were up 2.1 percentage points to 62.9%. South African hotels achieved occupancy of 64.3%, up from 61.9% a year ago, and a 5% increase in average room rates (ARR) to R1,505, lifting rooms revenue to R4.6bn. Demand was supported by meetings, conventions, incentives and events, and corporate and leisure foreign inbound travel, particularly in Gauteng and the Western Cape, it said. Offshore occupancy was 39.5%, down from 2025’s 40.5%, with Paradise Sun closed for some of the period. ARRs remained under pressure, declining by 15% due to the stronger rand.A marginal improvement in trading levels in Mozambique and the successful relaunch of Paradise Sun drove offshore performance in the second half.The group continues to prioritise targeted refurbishments and disciplined expansion to capture demand in structurally attractive, high-growth markets. During the year, capital investment focused on key projects including Paradise Sun, Southern Sun Newlands, Southern Sun The Cullinan, Southern Sun Mbombela, Mount Grace and Birchwood, resulting in a cumulative 652 upgraded bedrooms for the year. “While selected projects may be deferred in response to trading conditions or regional market dynamics to preserve cash, the group remains committed to advancing initiatives in markets demonstrating sustained demand and favourable long-term growth prospects,” it said.