The V&A Waterfront has confirmed its intention to develop a mid-market, internationally-branded hotel in the forthcoming year.
According to Cape Town Tourism, the expected tourism growth in the City for 2014 will be between 4 and 5%, while the United Nations World Travel Organisation (UNWTO) estimated a global year-on year increase of 3.3% per annum until 2030. For Cape Town, the majority of source markets are European, while the biggest growth market is set to come from Latin America.
With more than 24 million visitors per annum, and recognised as an economic powerhouse that has contributed almost R200 billion to South Africa’s gross domestic product (GDP) in the last 10 years, the Waterfront is an attractive prospect for international hotel operators.
With the announcement of this development, an opportunity for a new operator is presented for the first time since the new build of the One & Only Cape Town in 2009. The newest of the Waterfront hotels is the Queen Victoria, the result of the refurbishment of an existing building in 2011.
According to a report by Price Waterhouse Coopers LLP, Wilkofsky Gruen Associates, a snapshot of the South African hotel sector’s performance over the period January to June 2013 reflects that sustained growth with RevPAR (revenue per available room) has increased by 13.1% on a national aggregated basis. Healthy growth of 12.4% was experienced at three and four star levels, while the five star levels reflected impressive 15.6% growth. It also indicated Cape Town’s growth in this sector at 16.2%.