South Africa’s Hotel Industry Shines in April 2025 Despite Occupancy Dip

Nationally, South Africa’s hotels reported an occupancy rate of 56.8%, a modest 1.8% decline from April 2024’s 57.9%. However, the Average Daily Rate (ADR) surged 13.9% to ZAR 1,952.07, pushing Revenue Per Available Room (RevPAR) up 11.8% to ZAR 1,109.53. This growth reflects hotels’ ability to attract higher-paying guests, even with fewer rooms filled, signalling strong demand in key markets. Year-to-date, the picture is equally positive: occupancy edged up 0.3% to 60.3%, ADR climbed 10.5% to ZAR 2,109.41, and RevPAR rose 10.8% to ZAR 1,270.98, underscoring sustained demand through the first four months of 2025.

Regional Highlights: Western Cape Leads, Gauteng Lags

Western Cape: A Tourism Powerhouse

The Western Cape emerged as the star performer, with a 2.8% occupancy increase to 66.0% and a 20.3% ADR jump to ZAR 2,886.92, resulting in a 23.6% RevPAR surge to ZAR 1,905.84. Cape Town, a global tourism magnet, led the charge with a 2.1% occupancy rise to 67.7% and a 24.6% ADR increase to ZAR 3,442.54, driving a 27.3% RevPAR boost to ZAR 2,329.43. YTD figures for Cape Town show even stronger growth, with RevPAR up 22.5% to ZAR 2,971.61, fueled by an 18.7% ADR rise to ZAR 3,917.91. The Garden Route, a scenic coastal gem, posted an impressive 34.2% RevPAR gain to ZAR 994.94, driven by a 14.0% occupancy boost to 57.2% and a 17.7% ADR increase to ZAR 1,737.92. The Winelands also shone, with a 5.7% occupancy increase to 51.8% and a 23.3% RevPAR rise to ZAR 1,341.96, reflecting growing appeal for luxury and leisure travellers.

Gauteng: Facing Demand Challenges

In contrast, Gauteng faced challenges, with occupancy falling 5.4% to 51.1% and RevPAR dipping 3.3% to ZAR 725.29. Sandton saw a 6.8% occupancy drop to 51.5% and a 7.9% RevPAR decline to ZAR 696.98, despite a modest 1.2% ADR decrease. Pretoria & Surroundings struggled with an 8.7% occupancy decline to 47.2%, leading to an 8.5% RevPAR drop to ZAR 590.17. However, YTD data offers some optimism: Gauteng’s RevPAR grew 7.4% to ZAR 762.74, supported by a 6.4% ADR increase to ZAR 1,426.33, suggesting a recovery in pricing power. Johannesburg showed resilience, with a modest 0.5% RevPAR increase to ZAR 621.59 in April and a stronger 10.2% YTD RevPAR rise to ZAR 621.28.

KwaZulu-Natal: Mixed Results

KwaZulu-Natal presented a mixed picture. Durban’s RevPAR rose 15.2% to ZAR 462.23, driven by a 21.7% ADR surge to ZAR 965.28, despite a 5.3% occupancy drop to 47.9%. YTD, Durban’s RevPAR grew 5.7% to ZAR 460.62. However, the province’s 5-star segment faced significant headwinds, with a 30.0% occupancy decline to 45.4% and a 30.8% RevPAR drop to ZAR 1,185.23, despite a slight 1.1% ADR decrease. In contrast, 4-star hotels in KwaZulu-Natal performed well, with a 14.0% ADR increase to ZAR 1,117.64 and an 11.2% RevPAR rise to ZAR 701.78. The Drakensberg & Midlands region stood out, with a 34.1% RevPAR surge to ZAR 737.32, fuelled by a 26.6% ADR increase to ZAR 1,489.97 and a 5.9% occupancy rise to 49.5%.

Emerging Regions: North West and Free State Shine

North West emerged as an unexpected bright spot, with an 11.1% occupancy gain to 63.9% and a 19.9% RevPAR increase to ZAR 1,458.07, driven by a 7.9% ADR rise to ZAR 2,280.83. The Free State also performed strongly, with a 9.6% occupancy increase to 66.3% and a 23.5% RevPAR surge to ZAR 764.35, supported by a 12.7% ADR rise to ZAR 1,152.59. Conversely, Limpopo and Mpumalanga faced challenges, with RevPAR declines of 16.0% (to ZAR 594.09) and 14.2% (to ZAR 474.61), respectively, driven by significant occupancy drops of 18.1% and 13.3%.

Star-Rating Performance: Luxury Hotels Thrive

Across star ratings, 5-star hotels demonstrated exceptional pricing power. Despite a 4.0% occupancy decline to 60.5%, ADR soared 20.7% to ZAR 3,899.29, boosting RevPAR 15.8% to ZAR 2,358.61. Cape Town’s 5-star properties were particularly strong, with a 4.2% occupancy increase to 68.0% and a 33.3% RevPAR surge to ZAR 3,857.62, driven by a 27.9% ADR rise to ZAR 5,673.83. YTD, 5-star hotels nationwide saw a 9.8% RevPAR increase to ZAR 2,782.61. Four-star hotels also performed well, with an 18.3% ADR rise to ZAR 1,781.47 and a 15.2% RevPAR increase to ZAR 1,031.49, despite a 2.6% occupancy dip to 57.9%. Three-star hotels remained steady, with a 7.1% ADR increase to ZAR 1,275.78 and a 6.9% RevPAR rise to ZAR 694.57, appealing to budget-conscious travellers.

Interesting Fact: Garden Route’s Remarkable Recovery

A surprising highlight is the Garden Route’s exceptional performance, with a 34.2% RevPAR surge—the highest among all regions. This coastal paradise, known for its lush forests and pristine beaches, saw occupancy climb 14.0% to 57.2%, while ADR grew 17.7% to ZAR 1,737.92. This suggests a strong resurgence in domestic and international tourism, possibly driven by increased marketing efforts or renewed interest in eco-tourism. The Garden Route’s YTD RevPAR, though down 7.9% to ZAR 1,321.59, still reflects resilience, making it a must-watch destination for 2025.

Conclusion: A Resilient Industry with Regional Nuances

South Africa’s hotel industry in April 2025 showcased resilience, with ADR-driven RevPAR growth offsetting occupancy challenges. The Western Cape, particularly Cape Town and the Garden Route, led the way, while Gauteng and certain KwaZulu-Natal segments faced headwinds. YTD trends reinforce the sector’s strength, with 5-star and 4-star hotels driving revenue growth. As hotels navigate evolving traveller preferences, the ability to command higher rates will be key to sustaining growth. With tourism hotspots like the Garden Route rebounding strongly, South Africa’s hospitality sector remains a vibrant contributor to the economy.