South Africa Hospitality Industry Performance: October 2025 South Africa - Strongest October on Record

Occupancy climbed 8.6 percentage points to just under 70%, while average daily rates (ADR) rose a solid 9% to ZAR 2,002. Year-to-date RevPAR through October now stands 10.5% ahead of 2024, confirming that the recovery has broadened well beyond the initial post-pandemic rebound.

The numbers tell a story of a market firing on multiple cylinders: domestic leisure travel remains buoyant heading into summer, international arrivals continue their steady climb, and corporate demand – particularly in Gauteng – is showing renewed life after a more cautious 2024.

Regional Highlights

Western Cape led the country with 76.4% occupancy (+5.1%) and RevPAR of ZAR 2,392 (+19.2%). Cape Town specifically achieved:

Occupancy: 77.5% (+4.5%)

ADR: ZAR 3,673 (+15.1%)

RevPAR: ZAR 2,847 (+20.3%)

KwaZulu-Natal recorded the highest occupancy growth nationally at +20.5%, pushing the province to 65.6% occupancy. Durban’s recovery was particularly striking:

Occupancy: 61.4% (+37.0%)

RevPAR: ZAR 630 (+74.0%) – the largest monthly RevPAR gain of any major market

Gauteng maintained steady corporate-driven demand:

Occupancy: 66.0% (+9.5%)

RevPAR: ZAR 960 (+15.2%)

Sandton and Johannesburg both posted double-digit occupancy and RevPAR gains, while Pretoria showed more moderate growth.

Cape Town and the Western Cape lead the luxury charge

The Western Cape once again proved why it is the country’s hotel performance powerhouse. Occupancy topped 76% – up more than five points on last year – while ADR broke through the ZAR 3,100 barrier for the first time in an October. Cape Town itself pushed RevPAR to ZAR 2,847, a 20% leap that places the Mother City comfortably ahead of every other major market in the country.

Luxury properties in the Winelands and along the Garden Route also benefited from early-summer bookings, with several five-star estates reporting their best October occupancies since 2019.

Durban’s remarkable turnaround

Perhaps the month’s biggest headline came from KwaZulu-Natal, where occupancy jumped more than 20 percentage points to 65.6%. Durban, which had lagged the national recovery for much of the past two years, recorded a stunning 74% increase in RevPAR to ZAR 630. Hoteliers attribute the surge to a combination of aggressive spring marketing campaigns, the return of cruise passengers, and a calendar packed with sporting and cultural events.

Gauteng holds steady on corporate recovery

In the country’s business heartland, Gauteng occupancy rose to 66%, with Sandton and Johannesburg both posting double-digit RevPAR gains. Five-star properties in Sandton saw rates climb to almost ZAR 1,934 (up 3% on last year), while mid-scale and select-service hotels in Johannesburg and the East Rand benefited from strong weekend leisure fill.

Luxury segment finds its pricing power

Nationally, five-star and above properties increased ADR by nearly 9% to ZAR 3,881 and pushed RevPAR up 18.5%. After a period of caution on rate in 2023 and early 2024, luxury operators are finally enjoying sustained pricing power as international long-haul travellers return in greater numbers.

Four-star properties delivered the most balanced performance, combining a healthy occupancy lift with 16% ADR growth and RevPAR gains exceeding 20%. The three-star and budget categories also shone, with occupancy up almost 12 points as domestic travellers continued trading up from self-catering and guesthouses into branded hotels.

Looking ahead to peak season

With school holidays approaching, the Rugby World Cup Sevens in Cape Town, the festive season diaspora returning from abroad, and several major music festivals already sold out, November and December pipelines look exceptionally strong.

For an industry that has navigated load-shedding, water crises, and the deepest tourism slump in living memory, October 2025 feels like a genuine turning point. South Africa’s hotels are not just recovering – they are once again growing with confidence.

The October 2025 results confirm that South Africa’s hospitality recovery remains firmly on track. Double-digit RevPAR growth across almost every province and star category reflects a healthy mix of returning international leisure travellers, strong domestic demand, and gradually improving corporate and MICE activity.