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Despite water challenge, Cape Town's hotels thrive

Cape Town Marriott Hotel Crystal Towers, South Africa Image: Marriott International (Africa’s hotel sector is on track for further growth over the next five years, according to a report from PwC. )

According to the 2018 African Hotel Valuation Index, Cape Town's water crisis did not hurt the city's hotel room occupancy over the past year. In fact, hotel room values in the province increased by 25 percent in 2017.

The South African and African hotel markets have benefited from economic growth, foreign investment and political stability in a number of countries on the continent, the Index reported. 

"Cape Town’s recovery in the coming years is expected because of a stronger economy, the recent announcement that there would be no ‘Day Zero’ for 2019 if water restrictions are adhered to and an anticipated faster growth in foreign and domestic tourism," said Tim Smith, managing partner at independent global hospitality consultancy firm HVS. "Increase in regional tourism (both business and leisure), improving air connectivity across the continent, evolution in politics, increased room night demand and domestic consumption are all positive steps in the right direction for the fast-developing continent."

He added that to ensure continued support from local travelers in particular, hoteliers needed to start appealing to local demand and not relying on international visitors.

The fifth edition of the HVI analysed the hotel values of 26 markets operating in 19 African countries. The Index surveyed in excess of 75,000 existing and 11,500 proposed rooms in the upper mid-market and higher space.