According to the latest STR report, the South African hotel sector achieved robust performance in April 2025. Data covering 431 properties and 52,779 rooms across the country reveals the resilience story of hotels that command high rates to offset low room occupancy. From the vibrant Western Cape to the bustling hubs of Gauteng, regional and star rating variations paint a dynamic picture of the health of the industry. Annual (YTD) trends highlight the increased revenues of pricing power in most regions, further highlighting the adaptability of the sector.
Nationally, South African hotels reported occupancy rates of 56.8%. This is a modest 1.8% decrease from 57.9% in April 2024. However, the average daily rate (ADR) skyrocketed 13.9% to ZAR 1,952.07, boosting revenue per room per available 11.8% to ZAR 1,109.53. This growth reflects the hotel's ability to attract well-paid guests, even when there are few filled rooms, indicating strong demand in key markets. From the beginning of the year, the photos are similarly plus. Occupancy rose from 0.3% to 60.3%, ADR rose from 10.5% to ZAR 2,109.41, and RevPAR rose 10.8% to ZAR 1,270.98, highlighting sustained demand for the first four months of 2025.
Regional highlights: Western Cape Reed, Gauten Rug
Western Cape: Tourist Country
The Western Cape appeared as a star performer, with 2.8% occupancy rising to 66.0%, resulting in a 20.3% ADR jump to ZAR 2,886.92 and a 23.6% RevPAR surge in ZAR 1,905.84. Cape Town, a global tourism magnet, saw its occupancy rate rise of 2.1% to 67.7%, ADR increased by 24.6% to ZAR 3,442.54, and RevPAR of 27.3% to ZAR 2,329.43. Cape Town's YTD figures show even stronger growth, with RevPar increasing by 22.5% to ZAR 2,971.61, driving an ADR rise of 18.7% to ADR 3,917.91. A scenic coastal gem, Garden Route recorded a RevPAR gain of 34.2% on ZAR 994.94. Wineland also shines, with a 5.7% occupancy increase to 51.8% and a 23.3% RevPAR rises to ZAR 1,341.96, reflecting the growing appeal of luxury and leisure travelers.
Gauteng: Faces Demand Challenges
In contrast, Gauteng faced challenges, with occupancy dropping by 5.4% to 51.1%, and RevPar immersed 3.3% in ZAR 725.29. Sandton saw a 6.8% occupancy drop to 51.5%, with a 7.9% RevPAR down to ZAR 696.98 despite a 1.2% decrease in ADR. Pretoria & Andarsings reduced the occupancy of 8.7% to 47.2%, resulting in a 8.5% reduction in RevPAR on ZAR 590.17. However, YTD data provides optimism. Gauteng's Revpar increased 7.4% to Zar 762.74, supported by a 6.4% ADR increase to ZAR 1,426.33, suggesting a recovery in pricing power. Johannesburg showed resilience, with 0.5%, 0.5%, increased to ZAR 621.59 in April, with 10.2% YTD REVPAR rising to ZAR 621.28.
Kwazulu-natal: Mixed results
Kwazulu-Natal introduced mixed drawings. Durban's RevPAR rose 15.2% to ZAR 462.23, driven by a 21.7% ADR surge to ZAR 965.28, despite a 5.3% occupancy dropping to 47.9%. YTD, Durban's RevPar, rose 5.7% to ZAR 460.62. However, the state's five-star segment faced serious headwinds, with the 30.0% occupancy dropping to 45.4%, a 30.8% drop to ZAR 1,185.23 despite a mere 1.1% decrease in ADR. In contrast, Kwazulu-Natal's four-star hotels were doing well, increasing 14.0% to ZAR 1,117.64, RevPar 11.2% to ZAR 701.78. The Drakensberg & Midlands region stands out, with a 34.1% RevPAR surge in ZAR 737.32, with a 26.6% ADR increase and a 5.9% occupancy rate of 49.5% increase in ZAR 1,489.97.
Emerging Regions: The Glow of the Northwest and the Free State
The northwest emerged as an unexpected bright spot, with an occupancy of 11.1% to 63.9%, with a 19.9% RevPAR increase driven by ZAR 2,280.83 at ZAR 1,458.07. Freedom also performed strongly, with its occupancy of 9.6% to 66.3%, a 23.5% RevPAR surge to ZAR 764.35, supported by a 12.7% ADR rise at ZAR 1,152.59. Conversely, Limpopo and Mpumalanga faced challenges, with RevPar being driven by a decline of 16.0% (ZAR 594.09) and 14.2% (ZAR 474.61) and a significant occupancy of 18.1% and 13.3%.
Star Rating Performance: Luxury Hotels Break
Beyond the star rating, the 5-star hotel showed exceptional pricing power. Despite the 4.0% occupancy dropping to 60.5%, ADR has skyrocketed 20.7% to ZAR 3,899.29 and RevPAR 15.8% to ZAR 2,358.61. Cape Town's five-star traits were particularly strong, with occupancy increasing by 4.2%, to 68.0%, with a 33.3% RevPAR surge to 3,857.62. YTD, five-star hotels nationwide, saw a 9.8% increase in RevPar to ZAR 2,782.61. The four-star hotel also worked well, with 18.3% ADR rising to ZAR 1,781.47, and the 15.2% RevPAR increase to ZAR 1,031.49, while the 2.6% Occupancy DIP to 57.9%. The 3-star hotel remained stable, with a 7.1% increase to ZAR 1,275.78 and a 6.9% RevPAR rise to ZAR 694.57 appealing to budget-conscious travelers.
Interesting Fact: Amazing Recovery of the Garden Route
The surprising highlight is the exceptional performance of the Garden Route, with 34.2% RevPar surges, the highest of all regions. Known for its lush forests and pristine beaches, this coastal paradise rose from 14.0% to 57.2%, while the ADR rose 17.7% to ZAR 1,737.92. This suggests a strong revival in domestic and international tourism, possibly driven by an increase in marketing efforts and a renewed interest in ecotourism. YTD RevPar on the Garden Route, although down 7.9% to ZAR 1,321.59, it still reflects resilience and is a must-see destination for 2025.
Conclusion: Resilient industry with local nuances
In April 2025, the South African hotel industry showed resilience with ADR-driven RevPAR growth offsetting the occupancy challenges. The Western Cape, particularly the Cape Town and the Garden Route, led the way, with Gauteng and certain KwaZulu-Natal segments facing headwinds. YTD trends strengthen the sector's strength in which 5- and 4-star hotels drive revenue growth. As hotels navigate evolving traveller preferences, the ability to command higher rates is key to maintaining growth. With tourist hotspots like the Garden Route rebounding strongly, the hospitality sector in South Africa remains a vibrant contributor to the economy.
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