Cape Town's hotel pipeline is the largest in South Africa

Protea Hotel Fire & Ice Cape Town, South Africa. Photo credit: Marriott International(Image: Marriott International)

Cape Town has the largest pipeline of planned hotel development in South Africa, despite showing a decrease in total planned guestrooms, according to a report from W Hospitality Group.

Cape Town has 25 percent of the South African development pipeline with 1,063 guestrooms in six hotels. Durban has 16 percent with 697 guestrooms in five hotels. The city’s pipeline increased 40 percent from last year in terms of total guestrooms. 

Meanwhile, Pretoria has 11 percent of the pipeline with 463 guestrooms in three hotels. Johannesburg has only 10 percent of the pipeline with 432 guestrooms in four hotels, and Umhlanga has 7 percent of the pipeline with 298 guestrooms in two hotels.

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Development is slowing down in Cape Town and Pretoria. The number of planned guestrooms is down 22 percent and 28 percent, respectively, compared with 2017. In contrast, the pipelines in Durban, Johannesburg and Umhlanga are growing 40 percent, 23 percent and 113 percent, respectively.

“While Cape Town continues to offer great opportunities for hotel investment, it is exciting to see new hotel construction projects all over South Africa, in places such as: Addo, Ballito, Boschendaal, Hermanus, Kruger, Malelane, Mossel Bay, Nelspruit, Paarl, Polokwane, Port Elizabeth, Rosebank, St. Francis, Stellenbosch, Tsitsikama and Umfolozi,” Trevor Ward, managing director at W Hospitality Group, said in a statement.