South Africa’s hotel development market, especially in Cape Town, is currently buoyant, with innovative ways of accommodating corporate and leisure travellers, such as aparthotels, gaining momentum with investors.

Both occupancy and ADR are up across 5-star and 4-star hotels, which has led to an increase in redevelopment of some into fully furnished apartment hotels on sale to local and overseas buyers and leased back to hospitality management companies.

Guests are becoming used to seeking a more flexible product, on a short- or long-term basis, which offer more space and the opportunity to self-cater with other hotel-like amenities.

Serviced apartments in Africa represent under 1% of all hotel rooms, compared with 10% of supply worldwide.

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