Cape Town hotels achieve 72.5% occupancy in April 2025, cementing city’s status as Africa’s leading tourism, investment hub – CoStar

SOUTH AFRICA – In April 2025, Cape Town’s hotels recorded an impressive occupancy rate of 72.5%, the highest among South Africa’s major cities, according to the latest data from CoStar.

This milestone underscores the city’s robust recovery in tourism following global disruptions and reinforces its position as a premier destination for travelers and investors across Africa.

Cape Town’s 72.5% occupancy rate notably outpaces other South African cities and reflects a 20.1% year-on-year increase in Revenue Per Available Room (RevPAR), which now stands at ZAR 2,286.63 (US$129).

The city also saw a 17.7% rise in Average Daily Rate (ADR) to ZAR 3,145.96 (US$177.6), signaling strong demand and a willingness among visitors to pay premium prices for quality accommodation.

Luxury hotels in Cape Town performed particularly well, achieving a 66.2% occupancy rate, surpassing Johannesburg and Pretoria in this segment.

This surge in hotel performance is mirrored by a thriving real estate market. Cape Town’s average capital property value reached ZAR 13,400 (US$756) per square meter in 2024/2025, significantly higher than other major South African cities.

Industry experts attribute this growth to a combination of sustained tourism recovery, increased international investor interest, and a focus on lifestyle-driven mixed-use developments.

Wayne Godwin, CEO of JLL Africa, commented, “Cape Town’s tourism pipeline, investor confidence, and innovative developments are driving a real estate upswing. The city’s appeal is both emotional and financial, it makes sense to visit and increasingly to invest.”

Cape Town’s growing global appeal comes at an opportune moment as the city prepares to host the Future Hospitality Summit Africa (FHS Africa) on June 17–18, 2025.

The summit is Africa’s premier hospitality investment conference, attracting developers, operators, investors, and policymakers to discuss innovation, finance, and growth opportunities in the continent’s tourism sector.

The city’s hospitality pipeline is robust, with over 40 new hotel projects in various stages of planning and construction.

These include boutique hotels, aparthotels, and large urban resorts, signaling a diverse and competitive market poised for further expansion.

As Cape Town continues to lead South Africa’s tourism recovery, its strong hotel occupancy, rising real estate values, and international attention position it as Africa’s foremost destination for hospitality investment in 2025.

The city’s blend of natural beauty, cultural richness, and modern infrastructure ensures it remains a top choice for travelers and investors alike.

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