Newmark Hotels has opened its new R52m five-star Queen Victoria Hotel in the Portswood precinct of the V&A Waterfront, making it the only hotel group to own and operate three hotels in this top tourist location.
The 35-room luxury establishment is the latest addition to the Cape Town hotel industry, which has been marked by an overcapacity of rooms following a 15% increase in inventory over the past 18 months, especially in the five-star category. The opening came in the same week as the closure of long-established properties, the Alphen Hotel in Constantia, Le Vendôme Hotel in Sea Point and the Green Dolphin Restaurant in the Waterfront.
Undaunted by these developments, Newmark md, Neil Markovitz, says while the project was started four years ago before the recession, he would still go ahead with it, if he had to make the decision to do so today. He is banking on the family-owned group’s long-standing and hands-on hospitality experience, a great Waterfront location, loyal existing corporate customers, and offering outstanding service and value to make this new hotel a success. “We have been in the Waterfront since its inception so we have a very good idea of visitors’ expectations. We succeed because we react fast to changing market forces,” he says.
“We are very proud of this project. It cements our offering in the Waterfront. With our three properties in close proximity (V&A Hotel, Dockhouse and Queen Victoria Hotel) we now offer a Waterfront resort, which is something truly unique. There will be a lot of cross-selling between the properties, for example guests staying here will be able to dine at the V&A Hotel and use the pool and wellness spa at Dockhouse.”
With lead-in opening rates of about R1 875, Markovitz says Newmark’s philosophy is one of “pricing to sell”. “We’re always in tune with what the market wants to pay, but we rather add value (such as free laundry/transfers/phone calls) than drop our rates.”
Target markets for the new property will be international leisure travellers in core markets in Europe and the USA, as well as corporate guests in South Africa.
Markovitz says Newmark Hotels intends to expand its footprint and is looking at projects in Johannesburg and Durban and a number of opportunities in Africa.
