Derek Martin
12 Jan 2026
The South African hotel sector delivered a strong performance in November 2025, capping off a year of steady recovery and expansion. According to the latest STR Report, which tracks key metrics such as occupancy rates (Occ %), average daily rates (ADR), and revenue per available room (RevPAR), the industry saw significant year-over-year improvements both for the month and year-to-date (YTD). This growth reflects a rebound in tourism, bolstered by domestic travel, international visitor inflows, and favourable economic conditions despite global uncertainties. With data covering 215 properties and over 28,000 rooms sampled across the country, the report paints a picture of resilience, particularly in high-demand urban and coastal areas.
Overall, South Africa's hotel market achieved a RevPAR increase of 13.6% for November, driven by gains in both occupancy and ADR. Occupancy climbed to 71.1% from 68.3%, marking a 4.0% rise, while ADR advanced 9.2% to ZAR 2,162.00 from ZAR 1,979.37. This propelled RevPAR up to ZAR 1,536.72 from ZAR 1,352.37, with room revenue growing 12.9% despite a slight 0.6% dip in room availability.
Year-to-date through November, the momentum continued at a solid pace. Occupancy edged up 2.1% to 61.7% from 60.5%, ADR increased 8.6% to ZAR 1,939.22 from ZAR 1,786.24, and RevPAR rose 10.8% to ZAR 1,197.45 from ZAR 1,080.36. Room revenue matched this YTD RevPAR growth at 10.8%, supported by a 2.1% increase in room sales on essentially flat availability.
Performance by Star Rating: Luxury Leads, But Mid-Tier Surges Ahead
Breaking down by star categories reveals varied but mostly positive dynamics. Five-star properties, catering to high-end tourists and business travellers, showed solid growth in November: occupancy rose slightly by 0.8% to 70.4%, ADR increased 6.9% to ZAR 4,166.79, and RevPAR climbed 7.8% to ZAR 2,933.76. YTD, however, occupancy dipped 2.0% to 63.5%, though an 11.1% ADR surge limited the RevPAR gain to 8.9% at ZAR 2,444.53.
Four-star hotels stood out as top performers, with November RevPAR soaring 24.4% to ZAR 1,580.70, powered by a 3.2% occupancy increase to 74.5% and a strong 20.6% ADR jump to ZAR 2,122.58. YTD results remained robust, featuring 1.3% higher occupancy at 63.1%, 12.3% ADR growth to ZAR 1,764.64, and 13.7% RevPAR advancement to ZAR 1,113.80.
Three-star properties also performed well, with November RevPAR up 9.5% to ZAR 908.97 on a healthy 6.1% occupancy rise to 69.7% and a 3.2% ADR increase to ZAR 1,304.68. YTD, RevPAR grew 10.2% to ZAR 765.31, driven by 4.3% occupancy gains to 60.5% and 5.6% ADR upticks to ZAR 1,264.61.
This tiered performance highlights mid-range hotels benefiting from value-seeking travellers, while luxury segments sustain premium pricing amid more selective demand.
Regional Highlights: Gauteng and Western Cape Drive National Gains
Provincial and city-level data underscore geographic strengths, with urban hubs and tourist hotspots at the forefront.
Gauteng Province emerged as a powerhouse, posting a remarkable 28.7% November RevPAR increase to ZAR 1,169.79, fuelled by 11.2% occupancy growth to 72.3% and 15.8% ADR gains to ZAR 1,618.83. YTD RevPAR rose 10.4% to ZAR 864.57. Sub-regions shone brightly: Sandton achieved a staggering 46.8% RevPAR jump to ZAR 1,400.89, with 9.6% occupancy and 33.9% ADR increases; Pretoria & Surroundings delivered 19.8% growth to ZAR 941.53; Johannesburg climbed 12.8% to ZAR 827.69; and East Rand added 8.0% to ZAR 1,161.13. Gauteng's success likely ties to business travel, events, and infrastructure enhancements in Johannesburg and Pretoria.
The Western Cape Province saw November RevPAR grow 8.2% to ZAR 2,633.25, with ADR up 8.5% to ZAR 3,346.83 despite near-flat occupancy at 78.7%. YTD RevPAR advanced a strong 15.2% to ZAR 2,017.58. Cape Town led with 6.8% November growth to ZAR 3,078.56, boasting robust ADR gains across stars, such as 16.8% for 4-stars to ZAR 2,461.10. Northern Cape Town rose 5.7% to ZAR 1,406.78, Winelands 12.4% to ZAR 2,490.54, and Garden Route a standout 26.7% to ZAR 1,549.17. The province's summer appeal, wine tours, and coastal draws continue to pull in visitors.
KwaZulu-Natal Province recorded 10.7% November RevPAR growth to ZAR 821.46, lifted by 7.6% occupancy to 62.4% and 2.9% ADR to ZAR 1,315.98, though YTD growth moderated to 3.3% at ZAR 776.98. Durban surged 17.0% to ZAR 494.13, Umhlanga 6.0% to ZAR 1,186.58, and Zululand 21.0% to ZAR 637.87. Notably, 5-star properties here faced YTD headwinds, with RevPAR down 24.6% due to a 16.8% occupancy decline.
Elsewhere, Limpopo impressed with 37.0% November RevPAR growth to ZAR 1,090.18, while Mpumalanga edged up 1.2% to ZAR 627.55. Declines appeared in Eastern Cape (-2.2% to ZAR 689.82), Free State (-6.4% to ZAR 728.49), and North West (-8.0% to ZAR 1,365.98). Northern Cape and some regional areas had insufficient data for full monthly comparisons, though YTD trends varied.
These patterns reflect South Africa's diverse tourism mix: urban business centres like Gauteng on corporate demand, Western Cape and KwaZulu-Natal on leisure.
Challenges and Outlook: Pockets of Softness Amid Overall Optimism
The report is largely upbeat, but challenges persist in areas like Free State and North West, where November RevPAR fell amid seasonal or local pressures. High-end KwaZulu-Natal segments saw YTD occupancy drops, signalling vulnerability to international fluctuations. Luxury markets also showed room availability adjustments, pointing to supply tweaks.
Heading into 2026, the industry looks set for further gains, fuelled by peak summer tourism and events boosting urban stays. Operators should watch inflation, ZAR volatility and global trends. Focus on mid-tier investments and regional promotion could broaden the wins.
In summary, November 2025 was a highlight for South African hotels, with RevPAR growth surpassing occupancy and ADR advances in most segments. This not only signals recovery but cements the sector's role in economic vitality, from Johannesburg to Cape Town. Stakeholders can build on these successes with strategic planning.