Despite a tough economy and the after-effects of the drought, South Africa’s hotel development market, especially in Cape Town, is buoyant, and innovative ways of accommodating corporate and leisure travellers such as aparthotels  are quickly gaining momentum.

Five-star-hotel occupancy in Cape Town has increased by 4% over the last twelve months, with ADR up 2.6%, and figures for four-star hotels are also up 1.6% and 2.2% respectively.

This is encouraging property buyers to look at buying an apartment in a hotel property and then leasing it back to the hotel as investment opportunities.

Serviced apartments in Africa represent below 1% of all hotel rooms, offering potential for growth to the near-10% representation globally, and with recent growth in air capacity any new supply of hotels should be absorbed quickly.