Housing Insights
Tourism Accommodation
Cape Town Hotel Market (Q3 2025)
Data as of: Q3 2025
Source: STR, CoStar, Wesgro
72.5%
Occupancy Rate
YoY +2.6%
R3146
Avg Daily Rate (ADR)
β β¬161 / $170
R2287
RevPAR
Revenue per available room
+
Hotel Rooms
Across all segments
Cape Town's hotel market has rebounded strongly post-COVID, with occupancy rates now exceeding 2019 levels. The city remains Africa's top tourist destination, attracting both leisure and business travelers. Competition from Airbnb has pushed hotels toward differentiated experiences and premium positioning.
Performance by Hotel Segment
| Segment | Occupancy | ADR | RevPAR |
|---|---|---|---|
| Luxury (5-star) | 66.2% | R4000 | R |
| Upscale (4-star) | 70.5% | R2500 | R |
| Midscale (3-star) | 68.0% | R1400 | R |
| Economy | 72.0% | R800 | R |
ADR = Average Daily Rate. RevPAR = Revenue Per Available Room.
Segment Occupancy
Regional Comparison
| Area | Occupancy | ADR | Properties |
|---|---|---|---|
| Cape Town | 72.5% | R3146 | - |
| Western Cape | 64.6% | R2800 | - |
| Johannesburg | 56.0% | R1950 | - |
| National Average | 56.3% | R2100 | - |
Source: STR, CoStar. V&A Waterfront commands highest rates due to tourist concentration.
Regional ADR Comparison
Hotels vs Airbnb: Market Position
Key Differences
- Hotels: ~18,500 rooms, regulated, taxed, business-focused
- Airbnb: ~26,870 listings, mixed regulation, residential competition
- Hotel ADR (R3,146) vs Airbnb avg (R1,572/night) β 2x premium
- Hotels recovering market share through experiences and service
Tourism Growth Drivers
- 2024: Record 4.2M international visitors to Cape Town
- MICE sector (Meetings, Incentives, Conferences, Events) growing
- Weaker rand attracting international tourists
- Direct flights from Europe/USA increasing
Sources
Hotel & Tourism Data
Currency conversions use 2025 average rates: β¬1 β R19.5, $1 β R18.5