-
Radisson Collection Hotel, Waterfront Cape Town – Image Credit Radisson Hotel Group
Cape Town’s hospitality and real estate sectors are experiencing significant growth, highlighted by high hotel occupancy rates and rising property values.
Cape Town is witnessing substantial growth in its hospitality and real estate industries. This development is enhancing the city’s reputation as a top destination for tourism and investment in Africa. Due to this economic upswing, the upcoming Future Hospitality Summit Africa (FHS Africa), scheduled for June 17-19, is expected to draw significant attention.
Hotel Industry Performance
The hotel sector in Cape Town has demonstrated remarkable performance metrics. As of April 2025, the occupancy rate reached 72.5%, the highest in South Africa, with a Revenue Per Available Room (RevPAR) increase of 20.1% year-on-year, amounting to ZAR 2,286.63. The Average Daily Rate (ADR) also saw a 17.7% increase from the previous year, reaching ZAR 3,145.96. These figures indicate a strong rebound in demand and growing confidence in Cape Town’s hospitality offerings.
Real Estate Market Trends
Similarly, Cape Town’s real estate market is thriving. In the 2024/5 period, the average capital value of property in the city was recorded at R13,400 per square meter, surpassing values in Johannesburg and Pretoria. Factors contributing to this upswing include a robust tourism pipeline, investor confidence, and a focus on mixed-use and lifestyle-driven developments.
Impact on the Western Cape Region
The positive trends in Cape Town’s hotel and real estate sectors are also reflected across the Western Cape province. In April 2025, the region posted a hotel occupancy rate of 64.6%, significantly higher than the national average of 56.3%. Luxury properties in Cape Town achieved an occupancy rate of 66.2%, outperforming their counterparts in other major South African cities.
Industry leaders express optimism about the ongoing demand and opportunities in Cape Town, particularly in the premium and luxury segments. The anticipated opening of Morea House, Autograph Collection later in the year reflects the market’s appetite for high-quality hospitality experiences. Additionally, over 40 new hotel projects, ranging from boutique hotels to urban resorts, are currently being tracked in Cape Town, indicating a vibrant and expanding market.
Future Hospitality Summit Africa (FHS Africa) is set to play a crucial role in furthering investment and development in the hospitality sector. The summit will cover various aspects of hospitality investment and finance, development, capital markets, and sector-specific opportunities and challenges. It is a key networking event for industry leaders, investors, and policymakers, where significant deals are often initiated.
