The Western Cape has been outperforming every other province for hotel investment with Cape Town being the most popular city in Southern Africa for new investments, says Joop Demes, CEO of Pam Golding Hospitality.
The national 2014 year-to-date average revenue per available room growth (RevPAR) as at the end of September 2014 is 8,3% compared with the same period last year, with the Western Cape recording RevPAR growth of 19,2% for the first nine months this year compared with the same period last year. The September year-to-date average occupancy in the Western Cape has grown by 6,8% compared with the first nine months last year. 
According to Demes, the acquisition of the Protea Hotel Group by Marriott earlier this year has sparked foreign direct hotel investment interest that has predominantly focused on the Western Cape and Johannesburg, with the United States, China and the Middle East leading the surge. The interest and search is for existing underperforming hotels as well as for green-field opportunities. 
“We are aware of a ‘pipeline’ of 11 hotel projects in Cape Town with an estimated 2 102 rooms in total. Of the 11 hotel projects, eight are well advanced and three are at a feasibility stage. These hotels are scheduled to open within the next four years and if they all proceed it will create a collective investment in excess of R3.5 billion and create in excess of 2 000 direct jobs,” said Demes. 
South African demand for investment in the Western Cape is on the increase due to a strong performing market and a positive outlook for the hospitality industry within the entire province. International demand for investment was increasing due to a favourable exchange rate with Europe as the key market, coupled with a sharp increase in enquiries and investment out of China, he said.