Saturday, June 7, 2025

Cape Town’s hotels reached over 72% occupancy in April 2025, marking a strong recovery and positioning the city as a leading tourism and investment hub in Africa.

In April 2025, Cape Town achieved an outstanding hotel occupancy rate of 72.5%, the highest among South Africa’s major cities, according to the latest data from CoStar. This remarkable performance highlights the city’s robust recovery in tourism and reinforces its position as a prime destination for both travelers and investors. As the city prepares to host the Future Hospitality Summit Africa (FHS Africa) on June 17-18, this milestone further emphasizes Cape Town’s appeal in the global hospitality landscape.

This hotel performance surge is mirrored by a flourishing real estate market, positioning Cape Town as a leading example of post-pandemic resurgence. The growing global attention the city is receiving is attracting both hospitality and investment leaders. From high-end hotels to forward-thinking lifestyle developments, Cape Town’s diverse market is capturing the interest of international investors.

Cape Town Outshines the Rest of South Africa in Hotel Occupancy

According to CoStar’s April 2025 report, Cape Town’s 72.5% hotel occupancy rate outperforms all other cities in South Africa. The city’s Revenue Per Available Room (RevPAR) experienced a notable 20.1% increase year-on-year, reaching ZAR 2,286.63, while the Average Daily Rate (ADR) surged by 17.7%, now standing at ZAR 3,145.96.

The Western Cape as a Whole Benefits

Cape Town’s success extends beyond the city’s borders, with the broader Western Cape province also posting impressive hotel occupancy figures. In April 2025, the province recorded an average occupancy rate of 64.6%, significantly surpassing the national average of 56.3%. Cape Town’s luxury hotel sector, in particular, posted a strong 66.2% occupancy rate, outpacing Johannesburg and Pretoria in this regard.

Real Estate Market in Cape Town Booms

The positive trends in the hospitality industry are mirrored by Cape Town’s growing real estate market. In the 2024/2025 period, the average capital value of property in the city reached R13,400 per square meter, surpassing the values seen in Johannesburg and Pretoria. This growth can be attributed to the ongoing tourism recovery, an influx of international investors, and a shift toward developments driven by lifestyle needs.

FHS Africa Arrives at the Perfect Moment

Against this backdrop of rapid growth, Cape Town is set to host the Future Hospitality Summit Africa from June 17-18. As the continent’s leading conference for hospitality and tourism investment, FHS Africa serves as a premier platform for developers, operators, investors, and policymakers to discuss growth strategies, innovation, and new opportunities.

The summit will focus on key industry topics such as hospitality investment, finance, development, capital markets, and dealmaking. It is expected to draw major global brands and ambitious independent players, with many participants viewing the event as an ideal opportunity to launch new projects and form valuable partnerships.

Cape Town’s Development Pipeline Booms

The city’s growth is further evidenced by a substantial pipeline of hotel projects currently underway. Industry insiders report that over 40 new hotel developments are in various stages of planning and construction. These range from boutique hotels and aparthotels to large-scale urban resorts, reflecting Cape Town’s dynamic and competitive hospitality market.

Cape Town: Africa’s Premier Investment Destination

The combination of impressive hotel performance, rising real estate values, and increasing international interest has firmly established Cape Town as Africa’s leading destination for hospitality investment in 2025. The city is not only recovering from the pandemic but is also forging ahead with new advancements.

With Cape Town’s hotels achieving a 72.5% occupancy rate and the local real estate market showing significant growth, the city’s tourism and investment sectors are set for further expansion. The upcoming FHS Africa offers the perfect opportunity for industry leaders to come together, build new partnerships, and shape the future of hospitality across the continent.