Derek Martin
20 Aug 2025
The South African hotel sector demonstrated robust growth in July 2025, building on positive trends observed throughout the year. According to the latest STR report, national occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR) all posted gains compared to July 2024, signalling a continued rebound in tourism and business travel. This performance comes amid a stabilizing economy and increased international visitor numbers, though regional variations highlight uneven recovery across provinces.
National Overview: Steady Gains Across Key Metrics
South Africa's overall hotel occupancy rose to 58.6% in July 2025, a 4.1% increase from 56.2% the previous year. ADR climbed 5.3% to ZAR 1,698.41, while RevPAR surged 9.6% to ZAR 994.79. Room revenue grew by 9.7%, with available rooms edging up by just 0.1%, indicating that demand outpaced supply modestly.
Year-to-date (YTD) figures through July 2025 paint a similar picture of resilience. Occupancy improved to 59.2% (up 1.6%), ADR to ZAR 1,935.83 (up 8.8%), and RevPAR to ZAR 1,146.61 (up 10.5%). These gains were supported by a sample of 236 properties representing 30,796 rooms, out of a census of 428 properties and 52,727 rooms.
Breaking it down by star ratings:
5-Star Hotels: Occupancy dipped slightly to 57.4% (-0.1%), but ADR increased 7.3% to ZAR 3,342.24, driving RevPAR up 7.2% to ZAR 1,919.06. YTD, however, showed a 3.4% occupancy decline, offset by a 12.2% ADR rise for an 8.3% RevPAR gain.
4-Star Hotels: Stronger performance with occupancy at 58.1% (up 3.0%), ADR at ZAR 1,512.55 (up 7.5%), and RevPAR at ZAR 879.10 (up 10.8%).
3-Star Hotels: The standout category, with occupancy up 4.9% to 59.2%, ADR up 5.6% to ZAR 1,235.51, and RevPAR up 10.8% to ZAR 730.94.
These improvements reflect a mix of domestic leisure travel and a resurgence in international arrivals, particularly in luxury segments where rate hikes have boosted revenue without deterring guests.
Regional Highlights: Coastal and Urban Centres Lead the Charge
Performance varied significantly by province, with coastal and urban areas generally outperforming inland regions.
Western Cape: Occupancy fell marginally to 52.4% (-1.4%), but ADR rose 7.5% to ZAR 2,426.04, resulting in a 5.9% RevPAR increase to ZAR 1,272.04. Cape Town, the province's powerhouse, saw occupancy drop to 52.3% (-3.7%), yet ADR jumped 10.0% to ZAR 2,909.79, yielding a 5.9% RevPAR gain to ZAR 1,521.44. Sub-segments in Cape Town showed luxury properties (5-star) gaining 8.3% in RevPAR despite lower occupancy, while 4-star hotels led with a 13.7% RevPAR boost. The Garden Route shone brightly, with occupancy up 25.9% to 47.5% and RevPAR soaring 47.1% to ZAR 741.02, likely driven by seasonal winter escapes.
Gauteng: As the economic hub, Gauteng posted solid gains, with occupancy at 60.8% (up 8.6%), ADR at ZAR 1,422.01 (up 4.1%), and RevPAR at ZAR 864.92 (up 13.1%). Key sub-markets included:
Sandton: Occupancy rose to 58.7% (up 5.3%), RevPAR to ZAR 806.89 (up 8.6%).
Johannesburg: A strong 20.5% occupancy increase to 58.8%, with RevPAR up 27.8% to ZAR 810.35.
Pretoria & Surroundings: Occupancy up 12.2% to 55.7%, RevPAR up 12.1% to ZAR 693.63.
East Rand: Occupancy at 70.6% (up 4.3%), RevPAR at ZAR 1,166.39 (up 11.7%).
KwaZulu-Natal: Occupancy improved to 63.6% (up 2.3%), ADR to ZAR 1,459.56 (up 7.4%), and RevPAR to ZAR 927.81 (up 9.8%). Durban faced a slight occupancy dip to 56.5% (-2.7%) but countered with a 22.2% ADR surge to ZAR 939.47, pushing RevPAR up 18.9%. Umhlanga excelled with 73.3% occupancy (up 9.3%) and RevPAR at ZAR 1,365.93 (up 11.2%). However, 5-star properties in the province struggled YTD, with occupancy down 24.4% and RevPAR down 32.9%, possibly due to competitive pressures.
Eastern Cape: A top performer, with occupancy at 66.1% (up 19.3%), ADR at ZAR 1,100.95 (up 6.9%), and RevPAR at ZAR 727.55 (up 27.5%). Port Elizabeth mirrored this, with 23.4% occupancy growth to 68.0% and 33.3% RevPAR increase to ZAR 761.36.
Mpumalanga: Occupancy rose to 57.2% (up 8.9%), RevPAR to ZAR 660.05 (up 14.6%), bolstered by areas like Mbombela & Surroundings, where occupancy jumped 23.0% to 62.6%.
Inland provinces like Free State, Limpopo, and North West showed mixed results. Free State occupancy fell to 67.0% (-3.0%) but RevPAR rose 1.6% to ZAR 759.06. Limpopo and North West posted modest gains, with RevPAR up 3.4% and 9.3%, respectively.
Northern Cape data was insufficient for detailed analysis.
Year-to-Date Trends and Outlook
YTD through July 2025, South Africa's RevPAR stood at ZAR 1,146.61 (up 10.5%), with room revenue growing 10.8%. Regions like Gauteng (up 8.4%) and Western Cape (up 16.3%) contributed significantly, while KwaZulu-Natal saw a modest 0.6% RevPAR increase due to occupancy challenges in luxury segments.
Looking ahead, the industry could benefit from sustained marketing efforts to attract more international tourists, especially in underperforming luxury categories. Challenges such as energy costs and infrastructure may persist, but the overall upward trajectory suggests optimism for the remainder of 2025.
This analysis is based on STR's comprehensive data, covering a wide sample of properties across South Africa. For full details, subscribers can access the complete report.
Note: All figures are in ZAR and reflect percent changes from comparable 2024 periods.