Derek Martin
21 Oct 2025
The South African hotel sector demonstrated a mixed performance in September 2025, reflecting ongoing recovery trends amid economic pressures and seasonal variations. According to the latest STR Report, which tracks key metrics such as Occupancy (Occ %), Average Daily Rate (ADR), and Revenue Per Available Room (RevPAR), the industry saw modest gains in pricing power but faced challenges in occupancy levels. This analysis draws from data across 430 properties in the census (with 234 in the sample), encompassing 52,789 rooms (30,516 in the sample). All figures are reported in South African Rands (ZAR), with the exchange rate noted at approximately 17.26 ZAR to USD for contextual reference.
Nationally, RevPAR edged up slightly, driven primarily by ADR increases, though occupancy dipped compared to September 2024. Year-to-date (YTD) figures paint a more positive picture, indicating sustained growth over the first nine months of 2025. Regional variations were notable, with strong performers in the Western Cape contrasting softer results in areas like KwaZulu-Natal.
Below, we break down the performance by national aggregates, star ratings, and key provinces and sub-regions.
National Overview
For September 2025, South Africa's overall hotel occupancy stood at 63.0%, a decline of 4.8% from 66.2% in September 2024. This drop suggests subdued demand, possibly influenced by economic factors or off-peak seasonal timing. However, ADR rose to ZAR 1,823.04, up 6.9% from ZAR 1,705.04 the previous year, reflecting hotels' ability to command higher rates amid inflationary pressures and targeted pricing strategies.
The net result was a RevPAR of ZAR 1,149.39, a modest 1.8% increase over ZAR 1,128.91 in 2024. Room revenue grew by 1.7%, with room availability nearly flat (-0.1%) and rooms sold down by 4.9%. This indicates that while fewer rooms were occupied, higher rates compensated for the occupancy shortfall.
Year-to-date through September 2025, the picture improves: Occupancy reached 59.8% (up 1.1% from 59.2%), ADR climbed to ZAR 1,900.81 (up 8.3% from ZAR 1,755.27), and RevPAR hit ZAR 1,137.00 (up 9.4% from ZAR 1,039.01). Room revenue YTD grew by 9.6%, supported by a slight increase in room availability (0.1%) and rooms sold (1.2%). This suggests a resilient industry building momentum over the year, potentially buoyed by tourism recovery and events.
Performance by Star Rating
Luxury segments showed varied resilience, with higher-star properties leveraging premium pricing to offset occupancy declines.
5-Star Hotels: Occupancy fell to 64.5% (-6.9% from 69.2%), but ADR surged to ZAR 3,545.62 (+10.2% from ZAR 3,218.44), yielding a RevPAR of ZAR 2,285.54 (+2.6%). YTD, occupancy was 62.1% (-3.5%), ADR ZAR 3,805.03 (+11.9%), and RevPAR ZAR 2,361.23 (+8.0%). These properties, representing 73 in the census (46 sampled) with 8,288 rooms, benefited from affluent traveller demand.
4-Star Hotels: Occupancy dropped to 63.5% (-6.1% from 67.6%), with ADR at ZAR 1,661.77 (+7.9%), resulting in RevPAR of ZAR 1,055.51 (+1.3%). YTD figures: Occupancy 61.0% (+0.8%), ADR ZAR 1,694.00 (+10.1%), RevPAR ZAR 1,032.83 (+11.0%). This mid-tier segment (176 properties, 21,815 rooms) showed steady pricing gains.
3-Star Hotels: Occupancy eased to 62.6% (-2.9% from 64.5%), ADR rose to ZAR 1,235.85 (+4.5%), and RevPAR to ZAR 774.16 (+1.4%). YTD: Occupancy 58.4% (+3.1%), ADR ZAR 1,254.11 (+5.9%), RevPAR ZAR 732.64 (+9.2%). With 119 properties and 16,277 rooms, this category demonstrated balanced growth.
Overall, ADR increases across all stars (ranging from 4.5% to 10.2%) were a key driver, highlighting a focus on value-added services and rate optimization.
Regional and Provincial Insights
Performance varied significantly by province, with coastal and urban hubs showing divergent trends.
Western Cape: A standout performer, with occupancy at 64.7% (-5.0% from 68.1%), ADR ZAR 2,748.34 (+14.5%), and RevPAR ZAR 1,777.12 (+8.8%). Cape Town led the charge: Occupancy 65.8% (-5.5%), ADR ZAR 3,257.88 (+17.4%), RevPAR ZAR 2,143.97 (+10.9%). Sub-segments like 5-star Cape Town properties saw ADR jump 24.2% to ZAR 5,486.13. Other areas like Winelands (RevPAR +7.8%) and Garden Route (+10.4%) also thrived. YTD RevPAR for the province: ZAR 1,905.91 (+15.6%).
Gauteng: Occupancy dipped to 62.8% (-5.8% from 66.7%), ADR to ZAR 1,457.17 (+5.7%), and RevPAR nearly flat at ZAR 915.75 (-0.4%). Key sub-regions: Sandton (RevPAR +4.6%), Pretoria & Surroundings (-7.5%), East Rand (-5.2%), and Johannesburg (+5.2%). YTD RevPAR: ZAR 820.20 (+7.5%). As a business hub (130 properties, 20,590 rooms), Gauteng's performance reflects corporate travel fluctuations.
KwaZulu-Natal: Faced headwinds, with occupancy at 58.4% (-4.5% from 61.2%), ADR ZAR 1,329.15 (-2.1%), and RevPAR ZAR 776.62 (-6.4%). Durban struggled (RevPAR +4.1% despite -13.0% occupancy drop, offset by +19.7% ADR), while Umhlanga was stable (-4.1%). 5-star properties saw sharp declines (-36.6% RevPAR). YTD RevPAR: ZAR 757.49 (-0.5%).
Other Provinces:
Free State: Strong gains with occupancy 71.9% (+2.3%), ADR ZAR 1,146.04 (+5.4%), RevPAR ZAR 823.68 (+7.8%). YTD RevPAR +15.3%.
Limpopo: Occupancy 63.9% (-3.7%), ADR down 16.0% to ZAR 986.47, RevPAR -19.1%. YTD +7.5%.
North West: Occupancy 67.0% (-3.0%), ADR -5.2%, RevPAR -8.0%. YTD +1.0%.
Eastern Cape: Occupancy 66.2% (-0.6%), ADR +6.0%, RevPAR +5.3%. Port Elizabeth similar (+3.1%). YTD +7.9%.
Mpumalanga: Occupancy 53.1% (-2.4%), ADR -5.0%, RevPAR -7.4%. YTD -2.1%.
Provinces like Northern Cape had insufficient data for monthly metrics.
These regional disparities underscore the influence of tourism hotspots (e.g., Western Cape's appeal to international visitors) versus business-oriented areas.
Year-to-Date Trends and Broader Implications
YTD through September 2025, the national RevPAR of ZAR 1,137.00 represents a robust 9.4% increase, outpacing the monthly figure and signalling cumulative strength. Occupancy improved marginally (1.1%), but ADR's 8.3% rise was pivotal. Room revenue grew 9.6%, with minimal changes in supply.
This performance occurs against a backdrop of South Africa's economic challenges, including energy issues and global travel dynamics. The STR Report notes participation from a substantial sample, ensuring reliability, though blank rows indicate data gaps in smaller regions.
Looking ahead, the industry may benefit from summer tourism peaks, but sustaining ADR growth while addressing occupancy softness will be key. Hoteliers could focus on targeted marketing, sustainability initiatives, and digital enhancements to attract diverse segments.
In summary, September 2025 highlighted pricing resilience amid occupancy pressures, with YTD gains affirming a positive trajectory for South Africa's hotel sector. Stakeholders should monitor regional trends closely for strategic adjustments.
Source: 2025 STR Report, CoStar Group. All data as provided in the report.