Cape Town is Hot Property Development boom bodes well for Africa's top hotel investment summit

Hospitality Net

2 days ago

Cape Town's hospitality and real estate industries are experiencing remarkable growth, reinforcing the city's current status as Africa's premier destination for tourism and investment. This surge bodes well for the upcoming Future Hospitality Summit Africa, the continent's most influential hospitality & tourism investment conference, which comes to 'The Mother City' on June 17-18.
When destinations experience strong economic growth, they are typically a magnet for money, as investors are keen to come and see what's going on. Their presence has a knock-on effect of attracting top executives from developers, bankers, operators and brands, who are keen to meet their peers and discuss new opportunities. So, the organisers expect the Summit to be busy.
The city's hotel sector has shown outstanding performance, with CoStar's April 2025 figures revealing an occupancy rate of 72.5%, the highest in South Africa. Revenue Per Available Room (RevPAR) climbed by 20.1% year-on-year, reaching ZAR 2,286.63 and the Average Daily Rate (ADR) reached ZAR 3,145.96, up 17.7% on 2024. According to Philip Wooller, Area Director for the Middle East and Africa at CoStar. He said: 'Cape Town's performance reflects a powerful rebound in demand and a growing confidence in the city's hospitality offerings. The consistent rise in both occupancy and RevPAR shows that Cape Town is not only back on the global travel radar—it's commanding a premium.'
— Source: The Bench
— Source: The Bench
This strong performance extends across the Western Cape too. In April 2025 the province posted a 64.6% hotel occupancy rate, well above the national average of 56.3%. Cape Town's Luxury properties also performed particularly well then, achieving an impressive 66.2% occupancy—outpacing counterparts in other major South African cities.
Cape Town's real estate market is experiencing a similar boom. In 2024/5, the average capital value of property reached R13,400/sqm, significantly higher than Johannesburg, and Pretoria. We're seeing a convergence of factors driving the real estate upswing in Cape Town: a robust tourism pipeline, investor confidence, and a renewed focus on mixed-use and lifestyle-driven developments. The city's appeal is both emotional and financial—it makes sense to visit, and increasingly, it makes sense to invest. Wayne Godwin, CEO at JLL Africa
In keeping with its reputation as an investment-grade forum, FHS Africa's agenda will focus on all aspects of hospitality investment and finance, as well as development, capital markets, dealmaking and the sector's most pressing issues and opportunities. In the hospitality industry, it is known as a networking hub for global industry leaders, major investors, and policymakers and is an event where substantial deals are often conceived and announced.
We're seeing strong and sustained demand in Cape Town, driven by both international, and regional travel. This is creating meaningful opportunities for growth, particularly in the premium and luxury space. The anticipated addition of Morea House, Autograph Collection later this year reflects this momentum and the market's appetite for distinctive, high-quality hospitality experiences. Karim Cheltout, Senior Vice President, Lodging Development at Marriott International, Middle East and Africa.