1. Is Cape Town over its World Cup ‘hangover’ and are
5-Star Hotels heading in a positive direction?
Hilton Hotel South Africa Johannesburg
Is Cape Town over its World Cup ‘hangover’ and are 5-Star Hotels heading in a positive
direction?
Article by HPASA
The outlook for the 5-Star hotel market in South Africa is looking brighter, says Joop Demes,
CEO of Pam Golding Hospitality, particularly when viewed against the backdrop of global
uncertainty.
“As far as many of us can remember, Europe’s financial future has never seemed quite so
fragile,” he says. “To comment with any certainty on the 2012 outlook for Europe and on the
exchange rate of the Euro versus the Rand will depend on Europe’s politicians showing sound
leadership by saving the Euro through fiscal and monetary reform.”
Demes says while Africa has been fairly insulated from the Euro crisis due to its lack of
meaningful integration into the global financial system, the fluctuations in the Rand’s exchange
rate do play a major factor in terms of foreign investment and in terms of the value-for-money
proposition for foreign tourists to South Africa.
“The Rand exchange rates to the Euro, Pound and Dollar that prevailed during December 2011
and January 2012, did translate on average to a 15 percent discount compared to prices last
season. There is no doubt that this has contributed to a sharp improvement in ‘high end’
leisure business in Cape Town and to a lesser extent in Johannesburg.
“Lead times for visitor bookings are indeed becoming shorter and the 2010 Soccer World Cup
gave many new visitors a very favourable impression which is clearly paying off as foreign
tourists are attracted by word-of-mouth recommendations from friends and family who were
here June/July 2010. This is coupled with prices that are lower compared to the prices during
the World Cup event,” he says.
Demes adds it is very positive to see the resilience of the big brands in Cape Town, with hotels
such as the Cape Grace and the Mount Nelson showing high double digit increase in RevPAR
(revenue per available room) with an increase in room rate and occupancy for the first couple of
months of the season.
Quoting statistics extracted from the December 2011 STR Global South African Hotel review, he
says that in the Cape Town 5-Star market – written off by many market commentators over the
past six months – hoteliers experienced a very pleasing final quarter of 2011. During the period
October to December 2011 the occupancy figures averaged 66.4 percent, reflecting an increase
of 18.1 percent compared to the same period last year.
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2. “Cape Town 5-Star hotels increased their 2011 annual average occupancy by 8.5 percent
compared to the 2010 World Cup year. In what remains a competitive market, the encouraging
news is that Cape Town’s 5-Star hotels managed on average to increase their room rate by 2.3
percent during December 2011 compared to December 2010,” says Demes.
“While the January 2012 STR review has not yet become available (at the time this comment
was issued), it appears to have been another rewarding month for the big brands in the 5-Star
hotel industry in Cape Town. The Cape Grace, One&Only, The Table Bay and Radisson Blu all
experienced very healthy increases in RevPAR compared to last year, with the Mount Nelson
notable for phenomenal 49.5 percent growth in RevPAR in January 2012 compared to January
2011.
“We anticipate that the January 2012 RevPAR growth for the Cape Town 5-Star market will be
in excess of 20 percent compared to January 2011,” he adds.
The outlook for February, March and April (2012) is also positive among most of the 5-Star
hoteliers; the Cape Grace is on target to record its best month ever in February 2012 and the
Mount Nelson already has 17 percent more business on its books for the rest of 2012 compared
to last year.
“The introduction of new direct flights, the positive image of Cape Town and South Africa,
unrest in the Middle East and an improved exchange rate have no doubt played a role for
improved trading at both of our hotels,” says Sandro Fabris, regional managing director in
Africa for the Orient Express Group – owners of the Mount Nelson in Cape Town and the
Westcliff Hotel in Johannesburg.
Demes says December 2011 hotel occupancy throughout South Africa grew by 11.5 percent
compared to December 2010 and the consensus among industry leaders is that business and
event travel will also fare better during 2012. “It seems that increased demand throughout the
country is starting to absorb the room inventory that escalated sharply during the period 2008 to
2010.
“There are a number of international funds and private individuals seeking operators and hotels
that provide a compelling offer to a target market that can demonstrate growth and stability. In
conjunction with this there are a number of sellers needing to raise liquidity and this could well
result into a one or two larger deals with critical mass that will pave the way for one of the bigger
global brands,” he says.
He says Accor, Starwood and Hilton have all announced aggressive expansion plans in
Sub-Saharan Africa while Marriott, which for many years has been looking for an opportunity in
Southern Africa, has announced the senior vice president appointment of industry specialist
Alex Kyriakidis, former global chief of hospitality for Deloitte.
“There are also a number of luxury hotels for sale which offer exceptional value as long term
strategic investments and there are good deals to be done with global operators that are
seeking presence in the gateway cities of Southern Africa, for example Johannesburg and Cape
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3. Town.
“It is going to be an interesting year and acquiring properties to re-brand seems at present a
better option compared to building something new. When speaking to a number of regional
hotel operators most agree the timing is right to acquire existing hotel properties in Southern
Africa,” adds Demes.
For further information contact visit the HPASA website or get in touch with Joop Demes from
HPASA on 082 883 2231.
About the Author
HPASA is a collaboration of 5 highly respected hospitality business brokers, companies and
individuals, all of whom come with proven track records within their chosen fields. The
partnership offers a range of ready-to-use solutions for both small hospitality businesses, as
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A night on the township
Hilton Hotel South Africa Johannesburg
Twelve busty, cherub-faced women, they are like sirens as they stand in the foyer of the Soweto
Hotel and give a beautiful rendition of Nkosi Sikelel' iAfrika – "Lord Bless Africa" – the
anti-apartheid hymn and, since 1994, the joint national anthem of …
Hilton Hotel South Africa Johannesburg question by Jennifer L: safe and trendy
neighborhoods/hotels in Johannesburg, South Africa?
My husband and I will be in Johannesburg in May (Thursday through Sunday) for a short
vacation in between business trips. We would like to stay in a trendy location with fun
restaurants and character but we obviously want to be safe. We love good wine and food,
boutiques, and people-watching cafes. Any guidance on neighborhoods or hotels (we’re not
Hyatt/Hilton people) would be absolutely appreciated! Thank you very much!
Hilton Hotel South Africa Johannesburg best answer:
Answer by Frank S
Hitel Fire and Ice in Melrose Arch is affordable – The area is trendy, safe with many modern
facilities restaurants etc. http://www.hotelsone.com/johannesburg-hotels-za/protea-hotel-fire-and
-ice-melrose-arch.html?as=g&aid=8367335078&dsti=343438&dstt=8&label=ggehoeu-bh343438
&akw=hotel%20protea%20fire%20and%20ice%20melrose%20arch%20johannesburg&asrc=Se
arch&ast=&gclid=CLXi1NbFu68CFQkRfAodWEORig
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4. More details on the Melrose Arch http://www.melrosearch.co.za/
The other areas would be Rosebank. I would suggest the Crown Plaza Rose bank. It is close to
the Gautrain station. You can take the train to the Airport, to Sandton City and to Pretoria. It is
an express train – very safe and fast. Rosebank mall is extremely trendy with the African
Rooftop market.
Rosebank details : http://www.themallofrosebank.co.za/ http://www.thezoneatrosebank.co.za/
Crown Plaza Details : http://www.crowneplaza.com/hotels/gb/en/johannesburg/jnbrb/hoteldetail?
sicreative=10450028404&dp=true&sicontent=0&sitrackingid=340961722&cm_mmc=Google-PS
-CrownePlaza_AUT-_-G+B-AMEA-_-ZAF-Johannesburg+The+Rosebank-_-crowne+plaza+joha
nnesburg+the+rosebank&siclientid=2056
Gautrain Details : http://www.thezoneatrosebank.co.za/gautrain.htm
You can also try Sandton City. Trendy – Malls modern buildings. Hotel to stay could be the
Holiday Inn.
http://www.sandtoncity.com/libproperties/content/en/sandton-city/sandton-city-home
Then I can suggest Monte Casino – Casino complex with malls, theatres and
restaurants/movies. Try the Southern Sun at Monte Casino.
http://www.montecasino.co.za/Pages/default.aspx (You can use this website to book into the
Southern Sun)
Enjoy!
More information on South African experience at :
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