Cape Town is rapidly emerging as Africa’s top destination for hospitality, tourism, and real estate investment, with 2025 already proving to be a landmark year for the city. As the Future Hospitality Summit (FHS) Africa 2025 prepares to take place in “The Mother City” on June 17–18, all eyes are on this coastal metropolis, where growth, opportunity, and innovation are redefining the landscape.
Cape Town: Africa’s Leading Hospitality and Investment Hub
Fueled by a strong economic rebound and surging international travel, Cape Town’s hospitality industry is outperforming every major city in South Africa. According to CoStar’s April 2025 data, the city recorded a 72.5% hotel occupancy rate—the highest nationwide. Even more impressive, Revenue Per Available Room (RevPAR) jumped 20.1% year-on-year to ZAR 2,286.63, while Average Daily Rate (ADR) rose to ZAR 3,145.96, up 17.7%.
“Cape Town’s performance reflects a powerful rebound in demand and a growing confidence in the city’s hospitality offerings,” said Philip Wooller, Area Director for the Middle East and Africa at CoStar. “Cape Town is not only back on the global travel radar—it’s commanding a premium.”
The upward trend extends beyond city limits. The Western Cape province reported a 64.6% occupancy rate, significantly above the national average of 56.3%, with luxury hotels in Cape Town achieving a remarkable 66.2% occupancy, outperforming other major South African cities.
Cape Town Real Estate Investment is Surging
The city’s real estate market is riding the same wave of momentum. In 2024/5, average capital values reached R13,400 per square meter, surpassing Johannesburg and Pretoria. Experts attribute this to the city’s growing tourism, resilient economy, and the popularity of mixed-use, lifestyle-driven developments.
“We’re seeing a convergence of factors driving the real estate upswing in Cape Town,” said Wayne Godwin, CEO of JLL Africa. “The city’s appeal is both emotional and financial—it makes sense to visit, and increasingly, it makes sense to invest.”
FHS Africa 2025: Where Deals, Strategy, and Innovation Converge
The Future Hospitality Summit Africa 2025 arrives at a pivotal moment, promising to bring together the continent’s most influential voices in hospitality, real estate, investment, and development. The agenda covers critical topics including capital markets, hospitality finance, sustainable development, and strategic dealmaking.
This premier hospitality investment conference attracts top executives from global hotel brands, private equity firms, developers, and policymakers. It’s renowned as a space where strategic partnerships are formed and multi-million-dollar deals take shape.
“Cape Town is buzzing—I’m tracking over 40 new hotel projects, from boutique hotels and aparthotels to luxury urban resorts,” said Andrew McLachlan, Founder & MD, Develop Hotels Inc. “FHS Africa is perfectly timed to align brands, business models, and strategies for long-term value.”
A Market Ripe for Growth and Premium Experiences
International and regional travel demand is driving unprecedented growth in the luxury and premium hospitality sectors. The upcoming launch of Morea House, Autograph Collection, is just one example of the market’s appetite for distinctive, high-end experiences.
“We’re seeing strong and sustained demand in Cape Town. The market is maturing, and there’s a clear appetite for unique, high-quality hospitality experiences,” said Karim Cheltout, SVP, Lodging Development at Marriott International, Middle East and Africa.
Why Cape Town is the Place to Be in 2025
With record-breaking hotel performance, a booming real estate market, and a world-class investment summit on the horizon, Cape Town is positioning itself as Africa’s premier destination for hospitality investment and development. Whether you’re a developer, investor, operator, or brand leader, FHS Africa 2025 is the opportunity to connect, collaborate, and capitalise on Cape Town’s unstoppable momentum.
