Cape Town Shines as Hospitality Investment Hotspot
Cape Town is solidifying its position as Africa’s top destination for hospitality investment, attracting significant attention from global players. This surge in interest is fueled by the city’s robust tourism recovery, strong hotel performance, and a booming real estate market. The upcoming Future Hospitality Summit Africa (FHS Africa), scheduled for June 17-19, is perfectly timed to capitalize on this momentum.
The city’s hotel sector is experiencing remarkable growth, with a 72.5% occupancy rate recorded in April 2025—the highest in South Africa. Revenue per available room (RevPAR) soared by 20.1% year-on-year, reaching ZAR 2,286.63, while the average daily rate (ADR) climbed 17.7% to ZAR 3,145.96. This impressive performance underscores Cape Town’s resurgence as a premier global travel destination.
This positive trend extends beyond the city center. The Western Cape province achieved a 64.6% hotel occupancy rate in April 2025, significantly exceeding the national average of 56.3%. Luxury properties in Cape Town also outperformed their counterparts in other major South African cities, boasting a 66.2% occupancy rate.
Cape Town’s real estate market mirrors this growth, with average property values reaching R13,400 per square meter in 2024/25. This surge is driven by a combination of factors, including a robust tourism pipeline, strong investor confidence, and a growing focus on mixed-use and lifestyle-driven developments. The city’s appeal is both emotional and financial, making it an attractive destination for both visitors and investors.
The Future Hospitality Summit Africa is poised to be a key event for stakeholders in the region. The summit will address critical aspects of hospitality investment and finance, including development, capital markets, deal-making, and key opportunities and challenges facing the sector. As a renowned networking hub, FHS Africa will bring together global industry leaders, investors, and policymakers, fostering valuable connections and potentially facilitating significant deals.
Marriott International has highlighted Cape Town’s strong and sustained demand, driven by both international and regional travel. This positive market dynamic is creating significant growth opportunities, particularly in the premium and luxury segments. The upcoming addition of Morea House, Autograph Collection, exemplifies this trend and underscores the market’s appetite for distinctive, high-quality hospitality experiences.
With over 40 new hotel projects currently underway in Cape Town, ranging from boutique hotels and aparthotels to urban resorts, the city’s hospitality landscape is undergoing a significant transformation. The presence of both global brands and innovative independent concepts further enhances Cape Town’s appeal as a dynamic and evolving hospitality investment destination. FHS Africa is strategically positioned to help investors, developers, and owners align their brand strategies and business models for long-term value creation in this thriving market.
Cape Town’s success story offers valuable insights for African travel professionals. The city’s focus on developing high-quality hospitality offerings, coupled with a thriving real estate market and a proactive approach to attracting investment, has created a winning formula. By emulating these strategies, other African destinations can unlock the full potential of their tourism sectors and position themselves for sustainable growth.
The Future Hospitality Summit Africa serves as a platform for knowledge sharing and collaboration, providing African travel professionals with the opportunity to learn from industry leaders and explore new investment prospects. Cape Town’s remarkable growth trajectory underscores the transformative power of strategic planning, effective partnerships, and a commitment to delivering exceptional hospitality experiences. This success story is an inspiration for the entire African travel sector and a testament to the continent’s growing prominence as a global tourism and investment hub.
