South African Hotel Performance Review: August 2025 Shows Steady Growth Amid Regional Variations
The South African hotel sector continued its post-pandemic recovery in August 2025, posting solid year-on-year gains in key performance metrics, according to the latest data from STR. While the month brought a mix of challenges and opportunities across provinces and star categories, the overall picture reflects resilience, with occupancy rates climbing and revenue metrics showing healthy uplift. This review dives into the numbers, highlighting national trends, star-rated breakdowns, and regional hotspots, providing a snapshot for industry stakeholders navigating an evolving landscape.
National Overview: Occupancy and Revenue on the Rise
Nationally, South African hotels achieved an occupancy rate of 61.1% in August 2025, marking a 3.7% increase from 58.9% in August 2024. This uptick was complemented by a 5.7% rise in Average Daily Rate (ADR) to ZAR 1,745, pushing Revenue Per Available Room (RevPAR) up by 9.6% to ZAR 1,066. Room revenue grew by 9.7%, supported by a modest 0.1% increase in available rooms and a 3.8% jump in rooms sold.
Year-to-date (YTD) figures through August paint an even more optimistic picture, with occupancy edging up 1.8% to 59.4%, ADR climbing 8.4% to ZAR 1,911, and RevPAR advancing 10.4% to ZAR 1,136. This sustained growth underscores the sector’s adaptability, driven by a rebound in domestic tourism and cautious international arrivals. Participation remains robust, with 430 properties (52,789 rooms) in the census and 234 properties (30,728 rooms) sampled.
Star-Rated Performance: Luxury Leads, Mid-Tier Steadies
Breaking down by star ratings, the luxury segment (5 Stars) showed mixed results for the month. Occupancy dipped slightly by 1.2% to 62.1%, but a strong 11.7% ADR increase to ZAR 3,476 propelled RevPAR up 10.4% to ZAR 2,160. YTD, however, occupancy fell 3.1% to 61.7%, though ADR rose 12.1% to ZAR 3,838, yielding an 8.6% RevPAR gain to ZAR 2,370. With 73 properties in the census, this category highlights the premium end’s pricing power amid fluctuating demand.
The 4-Star segment performed consistently, with occupancy rising 1.9% to 62.1% and ADR up 5.4% to ZAR 1,532, resulting in a 7.4% RevPAR boost to ZAR 952. YTD metrics were similar, with occupancy at 60.7% (up 1.7%), ADR at ZAR 1,698 (up 10.3%), and RevPAR at ZAR 1,031 (up 12.2%). Representing 176 properties, this mid-tier category demonstrates balanced growth, appealing to both business and leisure travellers.
3-Star hotels saw the strongest occupancy gains, up 7.4% to 60.5%, with ADR increasing 5.6% to ZAR 1,217 and RevPAR surging 13.5% to ZAR 736. YTD, occupancy rose 4.0% to 57.9%, ADR by 6.1% to ZAR 1,257, and RevPAR by 10.3% to ZAR 728. With 119 properties, this value-driven segment continues to capture budget-conscious guests, contributing significantly to overall sector momentum.
Regional Insights: Western Cape Shines, Gauteng Holds Firm
Provincially, the Western Cape emerged as a standout, with occupancy up 3.5% to 61.1% and ADR soaring 12.5% to ZAR 2,577, driving a 16.5% RevPAR increase to ZAR 1,573. Cape Town, the province’s powerhouse, led with occupancy at 62.6% (up 2.6%), ADR at ZAR 3,061 (up 16.1%), and RevPAR at ZAR 1,918 (up 19.1%). Sub-markets like Cape Town 5 Stars (RevPAR up 29.1% to ZAR 3,394) and Winelands (RevPAR up 8.1% to ZAR 994) benefited from seasonal appeal and events.
Gauteng, the economic hub, reported occupancy growth of 6.8% to 61.9%, ADR up 3.3% to ZAR 1,429, and RevPAR advancing 10.3% to ZAR 885. Key areas like Sandton (RevPAR up 3.1% to ZAR 847) and East Rand (RevPAR up 15.5% to ZAR 1,172) showed strength, though Johannesburg’s impressive 18.3% RevPAR jump to ZAR 788 highlights urban recovery. Pretoria & Surroundings also grew, with RevPAR up 9.5% to ZAR 719.
In KwaZulu-Natal, occupancy softened by 2.9% to 57.4%, but ADR rose 3.2% to ZAR 1,330, yielding a modest 0.3% RevPAR gain to ZAR 763. Durban faced headwinds with occupancy down 2.5% to 53.4%, yet ADR surged 27.9% to ZAR 959, boosting RevPAR by 24.7% to ZAR 512. Umhlanga, however, posted gains across the board, with RevPAR up marginally to ZAR 1,052.
Other provinces showed varied results: Free State led with a 22.4% RevPAR increase to ZAR 810, driven by occupancy up 10.9%. Limpopo and Eastern Cape also grew, with RevPAR up 16.5% and 8.3% respectively. North West lagged, with RevPAR down 13.0% due to occupancy and ADR declines, while Mpumalanga saw a 8.0% uplift.
Looking Ahead: Opportunities and Cautions
August 2025’s performance signals a sector on the mend, with YTD RevPAR up 10.6% nationally, reflecting broader economic stabilization and tourism promotion efforts. However, regional disparities—such as softer demand in parts of KwaZulu-Natal and North West—underscore the need for targeted strategies, including infrastructure improvements and marketing campaigns.
As we head into spring, industry players should monitor global travel trends and domestic spending. With participation from over 400 properties, these insights from STR provide a reliable benchmark for forecasting and decision-making.
Data sourced from STR, LLC / STR Global, Ltd. All figures in ZAR. Note: Some regions with insufficient data (e.g., Northern Cape) are excluded from detailed analysis.
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