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Cape Town - The V&A Waterfront has confirmed its intention to develop a mid-market (therefore not a 5-star), internationally-branded hotel in the forthcoming year.
A spokesperson for the Waterfront told Fin24 that the timelines and development costs of the hotel, which will be a new build, will be determined by the operator's requirements.
The operator of the hotel has not been confirmed yet, but once the operator is confirmed, the outline of the project site, timelines and development costs could be determined.
"Given the growth in domestic, business and leisure tourism, coupled with consistent growth in the occupancy at our current hotels over the past 18 months, we believe the opportunity exists for a mid-market hotel development," David Green, CEO of the V&A Waterfront said on Monday.
According to Cape Town Tourism, the expected tourism growth in the city for 2014 will be between 4 and 5%, while the United Nations World Travel Organisation (UNWTO) estimated a global year-on year increase of 3.3% per year until 2030.
For Cape Town, the majority of source markets are European, while the biggest growth market is set to come from Latin America.
The Waterfront gets 24 million visitors per year and has contributed almost R200bn to South Africa’s gross domestic product (GDP) in the last 10 years.
This makes it an attractive prospect for international hotel operators.
With the announcement of this development, an opportunity for a new operator is presented for the first time since the new build for the One & Only in 2009.
The newest of the Waterfront hotels is the Queen Victoria, the result of the refurbishment of an existing building in 2011.
The V&A is currently home to six 5-star hotels, two 4-star hotels and two 3-star hotels. Within Cape Town, there are 24 5-star, 54 4-star and 20 3-star hotels.
In all three classes, compared in an independent report commissioned by the V&A Waterfront, the RevPAR (revenue per available room) figures for hotels at the Waterfront are much higher than those of surrounding areas, by premiums ranging from 52% for 5-star, 71% for 4-star and 95% for 3star.
According to a report by Price Waterhouse Coopers LLP, Wilkofsky Gruen Associates, a snapshot of the South African hotel sector’s performance over the period January to June 2013 reflects sustained growth with RevPAR increasing by 13.1% on a national aggregated basis.
Healthy growth of 12.4% was experienced at 3-star and 4-star levels, while the 5-star levels reflected impressive 15.6% growth. It also indicated Cape Town’s growth in this sector at 16.2%.
Kamil Abdul-Karrim, managing director of Pam Golding Tourism & Hospitality Consulting, commented that the South African hotel industry had come through its worst trading cycle in recent times from the last quarter of 2008 to the third quarter of 2011.
It is now beginning to reflect sustainable signs of recovery with the last three quarters reflecting year-on-year growth.
"The V&A Waterfront continues to attract a premium in rates and higher- than- average occupancies, and we believe an internationally-branded and marketed hotel will add to the portfolio and meet the increasing demand for such accommodation," said Green.
A spokesperson for the Waterfront told Fin24 that the timelines and development costs of the hotel, which will be a new build, will be determined by the operator's requirements.
The operator of the hotel has not been confirmed yet, but once the operator is confirmed, the outline of the project site, timelines and development costs could be determined.
"Given the growth in domestic, business and leisure tourism, coupled with consistent growth in the occupancy at our current hotels over the past 18 months, we believe the opportunity exists for a mid-market hotel development," David Green, CEO of the V&A Waterfront said on Monday.
According to Cape Town Tourism, the expected tourism growth in the city for 2014 will be between 4 and 5%, while the United Nations World Travel Organisation (UNWTO) estimated a global year-on year increase of 3.3% per year until 2030.
For Cape Town, the majority of source markets are European, while the biggest growth market is set to come from Latin America.
The Waterfront gets 24 million visitors per year and has contributed almost R200bn to South Africa’s gross domestic product (GDP) in the last 10 years.
This makes it an attractive prospect for international hotel operators.
With the announcement of this development, an opportunity for a new operator is presented for the first time since the new build for the One & Only in 2009.
The newest of the Waterfront hotels is the Queen Victoria, the result of the refurbishment of an existing building in 2011.
The V&A is currently home to six 5-star hotels, two 4-star hotels and two 3-star hotels. Within Cape Town, there are 24 5-star, 54 4-star and 20 3-star hotels.
In all three classes, compared in an independent report commissioned by the V&A Waterfront, the RevPAR (revenue per available room) figures for hotels at the Waterfront are much higher than those of surrounding areas, by premiums ranging from 52% for 5-star, 71% for 4-star and 95% for 3star.
According to a report by Price Waterhouse Coopers LLP, Wilkofsky Gruen Associates, a snapshot of the South African hotel sector’s performance over the period January to June 2013 reflects sustained growth with RevPAR increasing by 13.1% on a national aggregated basis.
Healthy growth of 12.4% was experienced at 3-star and 4-star levels, while the 5-star levels reflected impressive 15.6% growth. It also indicated Cape Town’s growth in this sector at 16.2%.
Kamil Abdul-Karrim, managing director of Pam Golding Tourism & Hospitality Consulting, commented that the South African hotel industry had come through its worst trading cycle in recent times from the last quarter of 2008 to the third quarter of 2011.
It is now beginning to reflect sustainable signs of recovery with the last three quarters reflecting year-on-year growth.
"The V&A Waterfront continues to attract a premium in rates and higher- than- average occupancies, and we believe an internationally-branded and marketed hotel will add to the portfolio and meet the increasing demand for such accommodation," said Green.
