THE number of planned new hotel rooms in sub-Saharan Africa stood at 21,052 rooms in 130 hotels in January, a massive 23% increase from the previous year.

Total income for SA’s tourist accommodation industry rises by 7% in January‚ according to Statistics SA’s tourist accommodation survey.

Boutique hotels suited to conversions of historic buildings

New South African hotel management group launched to revolutionise the industry

The outlook for the hotel industry in Sub-Saharan Africa looks increasingly positive, with potential growth of 7-15% in RevPAR (revenue per available room) expected for 2012 compared with 2011 - which augurs well for the future of the industry in the region

According to Savills UK, Hotel market performance figures showed that the 2012 Olympic Games delivered a gold medal winning performance for the London full-service hotel market as Gross Operating Profit per Available Room (GOPPAR) increased by a staggering 90%, underpinned by Revenue per Available Room (RevPAR) growth of 41%.

After a turbulent June and July which saw market wide RevPAR decline, the phenomenal performance for August, compared to the same month last year, was a timely boost for the London hotel market which, until then, experienced relatively weak revenue growth and no gross operating profit growth over the seven month period to July.Year to date performance (to August) has seen GOPPAR growth of 7% when compared to the same period last year.

Despite some of the negative press and cynicism in the build up to the Olympics regarding reduced levels of demand and over priced hotel rooms over the Olympic period, London hoteliers achieved unprecedented profit growth.

More in-depth analysis shows that the five-star/luxury hotel market and West End hotels were the real winners. Five-star and luxury hotels achieved an incredible 171% increase in GOPPAR in August 2012 over 2011 on the back of class leading growth in RevPAR and Total Revenue per Available Room (TRevPAR) of 64% and 65% respectively (see Graph 1).

Outer London and three-star hotels achieved the lowest GOPPAR growth of all market categories although the level of growth was still impressive at 30%.

The UK's movement back into recession in Q2 12 and the worsening of the Eurozone debt crisis has meant that operating conditions over the first eight months of this year have, on the whole, been challenging.

This, combined with significant increases in supply in the budget and full-service hotel market, has resulted in a significant reduction in growth in TRevPAR and GOPPAR in all hotel market segments. Apart from the respite offered by the Olympics, revenue and profit levels have been relatively fl at since September 2011.

The South African hotel market also needs a boost what with questions raised as to pricing, occupancy and oversupply in the sector. Not withstanding an encouraging growth forecast of 14% plus RevPAR in 2012. 

Published in Blog


Economic factors such as rising fuel costs coupled with a general need for convenient access is seeing Vaal Dam leisure properties receiving renewed interest from leisure home buyers, reports Phil Medlock, area principal for Pam Golding Properties.

Wednesday, 12 September 2012 12:58

Brave punt for Sub-Saharan hotel sector

The outlook for the hotel industry in Sub-Saharan Africa looks increasingly positive, with potential growth of 7-15 percent in RevPAR (revenue per available room) expected for 2012 compared with 2011 - which augurs well for the future of the industry in the region, said Joop Demes, CEO of Pam Golding Hospitality, a member of the Pam Golding Property group

Tuesday, 28 August 2012 10:27

Latest hotel casualty?

Attempts to turn central Cape Town luxury leisure development 15-on-Orange into a viable project have apparently taken a turn for the worse

The hospitality industry which boomed in South Africa in 2010 has admittedly had some post World Cup benefit. The industry has also shed some of its fly-by-nighters. However the debate continues as to whether hotel rooms are overpriced and over accommodated. Regardless, the question remains: aren’t hotels a property industry problem and therein lies the root dynamic behind the quantity and price of rooms?

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