Cape Town Hotels

Hospitality Industry Sees Dilution In Occupancies Joop continues with how Cape Town tourism is flourishing despite general hospitality industry trends : “Anywhere in the world, hotel markets seeing such a significant increase in room inventory will experience a dilution in overall occupancies, and Cape Town has been no exception. This has been exacerbated by the global and local economic slowdown, however, overall the Cape Town 5-Star hotel market has performed remarkably well and is in a far better shape compared to many international cities and destinations.”

View of the One&Only Hotel in Cape Town.

Positive Growth In Cape Town’s 5-Star Hotels

• Cape Grace Hotel at the V&A Waterfront grew its occupancy for the six months ending on 31 March 2011 by 15%, compared to the same period last year. This translates to an additional 6 500 guests.
• The One & Only, also at the V&A Waterfront, achieved average occupancies in excess of 75% for the period ending 31 March 2011, reflecting an increase of 24% compared to the same period last year. This brought in over 6 000 additional guests.
• The Radisson Blu Hotel at the V&A Waterfront also reports significant growth with an increase of almost 17% in occupancy, representing well in excess of 8 000 guests. This was also captured over the six month period ended 31 March 2011, compared to the same period the previous year.
• The Cape Royale Hotel is a new hotel that is well-positioned opposite the new stadium. It’s the only 5-Star all-suite hotel in Cape Town and has achieved an average occupancy well above 70% for the six months ending on 31 March 2011.

View of the spa (centre, foreground) at the One&Only Hotel in Cape Town.

Substantial Growth For The Cape Town Tourism Industry There is absolutely no doubt that the growth of quality supply and competition in Cape Town - a destination that competes with the world’s best - has resulted in a substantial growth in bed nights sold in the 5-Star Cape Town hotel market,” says Joop. “Regrettably, however, there are some stakeholders in the hotel industry, including financial institutions, which have not taken into account the above facts, and when commenting, quote an overall, diluted occupancy as opposed to an overall increase in the number of bed nights sold.” He adds that when reports refer to a hotel in ‘distress’, this does not necessarily mean that they are about to close down.