Largest Hotels in South Africa**

1. Southern Sun Waterfront - **** - 546 rooms - built 1998 - Cape Town
2. ArabellaSheraton Grand Hotel - ***** - 483 rooms - built 2003 - Cape Town*
3. Southern Sun Elangeni - **** - 450 rooms - built 1971,1973 - Durban
4. Garden Court Sandton City - *** - 444 rooms - built 1994, 1995 - Johannesburg
5. Garden Court South Beach - *** - 411 rooms - built 1972 - Durban
6. Southern Sun The Cullinan - **** - 410 rooms - built 1998 - Cape Town
7. Southern Sun Cape Sun - **** - 384 rooms - built 1983 - Cape Town
8. Sun City Cabanas - *** - 380 rooms - built 1981/1994 - Sun City
8. Southern Sun OR Tambo International Airport - **** - 365 rooms - built 1972,1982 - Johannesburg
10. Southern Sun Grayston - **** - 350 rooms - built 1982, 1995

* Note: To be renamed Westin Grand Hotel Arabella Plaza by end of July 2007

**Note: Sandton Sun & Towers InterContinental - ***** - 565 rooms - built 1984/1993 - Johannesburg has been divided into two hotels as of July 2007: Sandton Sun Hotel and InterContinental Sandton Towers.


Largest Hotels in Johannesburg

1. Garden Court Sandton City - *** - 444 rooms - built 1994, 1995
2. Southern Sun OR Tambo International Airport - **** - 365 rooms - built 1972,1982
3. Southern Sun Grayston - **** - 350 rooms - built 1982, 1995
4. Sandton Sun Hotel - ***** - 333 rooms - built 1984**
5. Sandton Hilton - ***** - 329 rooms - built 1997
6. Birchwood Executive Suite Hotel - **** - 325 rooms - built 1996, 2002
7. Protea Hotel Balalaika - **** - 324 rooms - built 1969, 1989, 1993
8. Protea Hotel Parktonian - **** - 294 rooms - built 1984
9. Rosebank Hotel - **** - 292 rooms - built 1975, 1993
10. Radisson Sandton - ***** - 283 rooms - opening 2008

**Note: Sandton Sun & Towers InterContinental - ***** - 565 rooms - built 1984/1993 - Johannesburg has been divided into two hotels as of July 2007: Sandton Sun Hotel and InterContinental Sandton Towers.

InterContinental Sandton Towers - ***** - 231 rooms - built 1993


Largest Hotels in Cape Town

1. Southern Sun Waterfront - **** - 546 rooms - built 1998
2. ArabellaSheraton Grand Hotel - ***** - 483 rooms - built 2003*
3. Southern Sun The Cullinan - **** - 410 rooms - built 1998
4. Southern Sun Cape Sun - **** - 384 rooms - built 1983
5. Protea Hotel President - **** - 349 rooms - built 1997
6. Table Bay Hotel - ***** - 329 rooms - built 1997
7. Garden Court Eastern Blvd - *** - 292 rooms - built 1974
8. Breakwater Lodge - *** - 268 rooms - built 1992
9. Commodore Hotel - ***** - 236 rooms - built 1998
10. Ritz Hotel - *** - 222 rooms - built 1972
* Note: To be renamed Westin Grand Hotel Arabella Plaza by end of July 2007


Largest Hotels in Durban

1. Southern Sun Elangeni - **** - 450 rooms - built 1971,1973
2. Garden Court South Beach - *** - 411 rooms - built 1972
3. Garden Court Marine Parade - *** - 344 rooms - built 1985
4. Durban Hilton - ***** - 327 rooms - built 1997
5. Southern Sun North Beach - *** - 280 rooms - built 1978
6. Royal Hotel - ***** - 272 rooms - built 1979
7. Blue Waters Hotel - *** - 265 rooms - built 1972
8. Umhlanga Sands - *** - 237 rooms - built 1977
9. Cabana Beach - *** - 218 rooms - built 1976
10. Suncoast Hotel - ***** - 180 rooms - built 2006



Largest Hotels in Pretoria

1. Manhattan Hotel - *** - 270 rooms - built 1974
2. Holiday Inn - **** - 241 rooms - built 1984
3. Burgers Park Hotel - *** - 240 rooms - built 1973
4. Hotel 224 - ** - 224 rooms - built early 1970's
5. Sheraton Hotel & Towers - ***** - 175 rooms - built 1999


Largest Hotels in Port Elizabeth

1. Garden Court Kings Beach - *** - 285 rooms - built 1971,1995
2. Summerstrand Hotel - *** - 241 rooms - built 1971
3. Radisson Port Elizabeth - ***** - 173 rooms - opening 2008
4. City Lodge Port Elizabeth - *** - 148 rooms - built 1989
5. Protea Hotel Edward - *** - 106 rooms - built 1903


Largest Hotels in East London

1. Premier Hotel Regent - *** - 187 rooms - built 1998
2. Garden Court East London - *** - 173 rooms - built 1973
3. Osner Hotel - *** - 110 rooms - built 1972
4. Kennaway Hotel - *** - 106 rooms - built 1967
5. Road Lodge East London - * - 90 rooms - built 2007


Largest Hotels in Bloemfontein

1. City Lodge - *** - 152 rooms - built 1989
2. Southern Sun Bloemfontein - **** - 148 rooms - built 1988
3. President Hotel - *** - 145 rooms - built 1969
4. Landmark Lodge Bloemfontein - *** - 112 rooms - built 1972
5. Protea Hotel Bloemfontein - **** - 96 rooms - built 2002
Note: Protea Hotel Willow Lake - **** - 94 rooms - opening 2008


Largest Hotels at Sun City

1. Sun City Cabanas - *** - 380 rooms - built 1981/1994
2. Sun City Hotel - ***** - 342 rooms - built 1979
3. The Palace of the Lost City - ***** - 338 rooms - built 1992
4. The Cascades - ***** - 241 rooms - built 1984
5. Sun City Vacation Club - self-catering - 230 units - built 1998


Note: Wild Coast Sun - **** - 336 rooms - built 1981, 1987 - Bizana, Eastern Cape

get some pictures of the hotels.

I think there's a typo. The Durban Hilton is called the Sandton Hilton on this list and the Durban hotel thread.

and the Durban Hilton has more rooms than the sandton hilton

Westcliff, Johannesburg

http://farm1.static.flickr.com/24/94233014_83bfc245a6_b.jpg
http://farm1.static.flickr.com/40/94226594_5d1ccda2c2_b.jpg
http://farm1.static.flickr.com/18/94235762_95043ac8d5_b.jpg

Michelangelo, Sandton, Johannesburg

http://sandtoncentral.co.za/images/galleries/scp_2006_7/a2exterior_night.jpg

http://sandtoncentral.co.za/images/galleries/scp_2006_7/dreception.jpg

Crown Plaza, Sandton, Johannesburg

http://sandtoncentral.co.za/images/galleries/scp_2006_7/sandton5.jpg

Sandton Sun & Towers InterContinental - ***** - 565 rooms - built 1984/1993 - Johannesburg

http://sandtoncentral.co.za/images/galleries/scp_2006_7/hotels2.jpg

Holiday Inn, Sandton, Johannesburg

http://sandtoncentral.co.za/images/galleries/scp_2006_2/d1050016.jpg

Protea Hotel Balalaika - **** - 324 rooms - built 1969, 1989, 1993

http://farm1.static.flickr.com/233/519814007_9ca45a9266_o.jpg
http://sandtoncentral.co.za/images/galleries/scp_2006_7/f1030005.jpg

Sandton Hilton - ***** - 329 rooms - built 1997

http://sandtoncentral.co.za/images/galleries/scp_2006_13/f1000021.jpg

Protea Hotels, Wanderers, Johannesburg

http://farm1.static.flickr.com/172/478560320_85991489e5_o.jpg

Palazzo, Montecasino, Johannesburg

http://farm1.static.flickr.com/206/478876819_6317c12e5f_o.jpg

http://farm1.static.flickr.com/142/386592721_d4a5de2cb0_b.jpg

I think there's a typo. The Durban Hilton is called the Sandton Hilton on this list and the Durban hotel thread.

Thanks for the catch. I changed it on the list.

and the Durban Hilton has more rooms than the sandton hilton

I'm not sure about it. When the hotel opened in 1997 it was 2 rooms smaller than the one in Sandton unless if you know of any extensions made to the hotel in the last couple of years.

Nice Pics, Kulani.

* Note: To be renamed Westin Grand Hotel Arabella Plaza by end of July 2007

What a bloody long winded name

biggest hotel is still the mothballed JHB sun , had like 700 keys or something in its prime

Still cant believe any of the coastal city's dont have a bigger hotel than the current biggest, I know the one in CT is only 20 rooms short, but still.

Still cant believe any of the coastal city's dont have a bigger hotel than the current biggest, I know the one in CT is only 20 rooms short, but still. well coastal cities have more hotels .e.g 2 big hotels vs 5 medium sized 1s place holiday houses and etc

Largest Hotels in South Africa in 1987 - 20 years ago

1. Johannesburg Sun & Towers - ***** - 792 rooms - built 1986 (closed 1998)
2. Carlton Hotel - ***** - 663 rooms - built 1972, 1983 (closed 1998)
3. Elangeni Hotel - **** - 450 rooms - built 1971, 1973
4. Karos Johannesburger Hotel - *** - 395 rooms - built 1975 (closed 2000)
5. Malibu Hotel - *** - 387 rooms - built 1972
6. Holiday Inn Jan Smuts Airport - *** - 365 rooms - built 1972, 1982
7. Cape Sun Hotel - ***** - 364 rooms - built 1983
8. Protea Gardens Hotel - *** - 358 rooms - built 1976 (closed 2002)
9. Holiday Inn Marine Parade - *** - 344 rooms - built 1985
10. Sun City Hotel - ***** - 342 rooms - built 1979

Largest Hotels in Johannesburg in 1987 - 20 years ago

1. Johannesburg Sun & Towers - ***** - 792 rooms - built 1986 (closed 1998)
2. Carlton Hotel - ***** - 663 rooms - built 1972, 1983 (closed 1998)
3. Karos Johannesburger Hotel - *** - 395 rooms - built 1975 (closed 2000)
4. Holiday Inn Jan Smuts Airport - *** - 365 rooms - built 1972, 1982
5. Protea Gardens Hotel - *** - 358 rooms - built 1976 (closed 2002)
6. Sandton Sun Hotel - ***** - 334 rooms - built 1984
7. Braamfontein Protea Hotel - **** - 308 rooms - built 1984
8. Landdrost Hotel - ***** - 270 rooms - built 1970
9. Holiday Inn Sandton - *** - 250 rooms - built 1982
10. Holiday Inn Milpark - *** - 246 rooms - built 1976

Largest Hotels in Cape Town in 1987 - 20 years ago

1. Cape Sun Hotel - ***** - 364 rooms - built 1983
2. Holiday Inn Eastern Blvd - *** - 292 rooms - built 1974
3. Ritz Plaza Hotel - *** - 222 rooms - built 1972
4. Heerengracht Hotel - ***** - 200 rooms - built 1970 (became St Georges Hotel in 1988)
5. Holiday Inn Bellville - *** - 172 rooms - built 1971, 1982 (closed 2002)
6. Capetonian Protea Hotel - **** - 170 rooms - built 1969
7. Inn on the Square - *** - 168 rooms - built 1981
8. Mount Nelson Hotel - ***** - 161 rooms - built 1899, 1981
9. Vineyard Hotel - *** - 158 rooms - built 1947, 1986
10. President Hotel - ***** - 153 rooms - built 1967 (closed 1991 and demolished and replaced by Protea Hotel President in 1997)

Largest Hotels in Durban in 1987 - 20 years ago

1. Elangeni Hotel - **** - 450 rooms - built 1971, 1973
2. Malibu Hotel - *** - 387 rooms - built 1972
3. Holiday Inn Marine Parade - *** - 344 rooms - built 1985
4. Maharani Hotel - ***** - 272 rooms - built 1978
5. Royal Hotel - ***** - 272 rooms - built 1979
6. Holiday Inn Ocean City - *** - 268 rooms - built 1972 (closed 1992)
7. Blue Waters Hotel - *** - 265 rooms - built 1972
8. Umhlanga Sands - *** - 237 rooms - built 1977
9. Cabana Beach - *** - 218 rooms - built 1976
10. Tropicana Hotel - **** - 168 rooms - built 1966

6. Holiday Inn Ocean City - *** - 268 rooms - built 1972 (closed 1990)

Where was that?

Where was that?

On the Golden Mile one street behind towers on the beachfront

On Gillespie St? Did it by any chance have a Spur on the ground floor?

On Gillespie St? Did it by any chance have a Spur on the ground floor?

I don't know but it was renamed the Durban Inn when Southern Sun got rid of it, then two years later it was closed and became a retirement home.

What a bloody long winded name

ArabellaStarwood's flagship in Munich will be renamed similarly the Westin Grand Hotel München Arabellapark from ArabellaSheraton Grand.

biggest hotel is still the mothballed JHB sun , had like 700 keys or something in its prime

See my 20-years ago list which has Joburg Sun and Carlton on it.

On Gillespie St? Did it by any chance have a Spur on the ground floor?

Nope it was next door to the icerink and mangrove centre. It had a very cool pool deck me remembers and mosi is right it became an old age home

Its to the side of of Mangrove ?

http://i10.tinypic.com/66mz91j.jpg

Since we are chatting about what is existing, why not list the new hotels coming up? below is the list of 100% confirmed new Durban hotels.

All 100% confirmed new Durban Hotels in room order.

City Lodge Umhlanga *** City Lodge 209 rooms (40 additional)
Protea Umhlanga Ridge **** Protea Hotels 201 rooms
Marriot Umhlanga ***** Marriot Hotels 200 rooms
“Design Quarter Hotel” **** ? 200 rooms
Fairmont Zimbali ***** Fairmont Hotels 190 rooms
Radisson Park Avenue ***** Radisson Hotels 185 rooms
Holiday Inn Express Umhlanga *** Holiday Inn 170 rooms
Protea Umhlanga *** Protea Hotels 170 rooms (50 additional)
Splice Umhlanga **** Urban Hip Hotels 160 suites
“Hoy park Hotel” *** ? 160 rooms
S on Timeball ***** Inveno Hotels 140 suites
Nautical Pride Hotel ***** ? 110 rooms
The Oyster Box Hotel ***** Red Carnation 101 rooms (25 additional)
Heritage Square ***** Three Cities 100 suites
QuayWest **** ? 95 rooms
The Royal Palm Hotel ***** Three Cities 93 suites
The Mast ***** Urban Hip Hotels 60 suites
Simbithi Lodge **** Three Cities 60 suites
Dunkirk Lodge **** ? 40 suites
Cotswolds Lodge **** ? 35 suites
Point Bastille Hotel **** Boutique 25 rooms

Total additional rooms: 2339 rooms/suites

DB thats the one,

Holy shit. I can't believe I didn't remember that hotel. I spent a school term right across the street in 1990, and walked past the place every flippin' day. :)

Thanks for the pic, DB!

Its to the side of of Mangrove ?

http://i10.tinypic.com/66mz91j.jpg

It looks sad and run down. I think they closed it as a hotel because it could not compete with the ones on the beachfront at the time especially when the Marine Parade Holiday Inn opened in 1985. I think the recession during the latter apartheid years had forced it out of business as the year it closed in 1992 was the worst year for the South African economy when the economy declined by -2.5%.

Dysan,

Good going on the list of new hotels planned in Durban. We need a list for the other cities as well.

Mo Rush,

Can you do up a list of all the new hotels planned in Cape Town similar to Dysan1's list for Durban

i am trying to do ones for CT and Joburg at present

i am trying to do ones for CT and Joburg at present

Good going Dysan1. Mo Rush, Hsark, and Harkeb may have additional info for you on Cape Town while Joburg, Mike2005 and Jakes1 could help you on Joburg. Aside from that the posts in the Projects subforum should help. The Links to Developments page for Cape Town has been updated in Jan 07 as far as links to these developments for more info.

Mount Nelson, Cape Town

http://www.eyesonafrica.net/south-african-safari/mtnlsn_imgs/gates.jpg
http://www.eyesonafrica.net/south-african-safari/mtnlsn_imgs/fountn.jpg
http://www.eyesonafrica.net/south-african-safari/mtnlsn_imgs/pool.jpg

Please see the revised list of the Largest Hotels in South Africa at the beginning of the thread as the Sandton Sun & Towers InterContinental is now two hotels: Sandton Sun Hotel and InterContinental Sandton Towers. As you know Southern Sun Hotels has been getting rid of foreign-branded hotels in SA and this comes a no surprise. They plan to rebrand the two Holiday Inns in Pretoria and Sandton Morningside later this year which will leave the Sandton Towers and the Airport Sun as the only InterContinental branded hotels in SA.

With the division of the five-star Sandton Sun & Towers InterContinental, which had 564 rooms as a single hotel into two hotels (the unbranded five-star Sandton Sun with 333 rooms and the branded five-star InterContinental Sandton Towers with 231 rooms), the four-star Southern Sun Waterfront (formerly Holiday Inn Waterfront) located in Cape Town is now the largest hotel in South Africa with 546 rooms, while the five-star ArabellaSheraton Grand Hotel (soon to be rebranded as the Westin Grand Hotel Arabella Plaza) located also in Cape Town is now the largest five-star hotel in South Africa with 483 rooms.

Currently the largest hotel in Johannesburg is the three-star Garden Court Sandton City with 444 rooms and the largest hotel in Durban is the four-star Southern Sun Elangeni with 450 rooms.

I wonder why there is no discussion of any new hotels in South Africa in this thread for 2 years. With the 2010 World Cup to be held in less than a year, There are already hotels in Johannesburg, Cape Town, Durban, Pretoria, Bloemfontein, and Port Elizabeth. The other cities with WC venues are Rustenburg, Polokwane, and Nelspruit and I don't think these three hotels are well-known cities.

Some threads are forgotten :)

If I'm not mistaken, I think another similar thread has "taken over" this one.

Would the QE2 being berthed in Cape Town, with capacity for 2000 beds be considered the largest hotel in RSA?

^^No, And isn't the QE2 supposed to be a floating hotel in Dubai's Jumeirah Palm Island?

no money

Hotel bargains aplenty
2009/08/05

Johannesburg - Hotels are cutting back rates by up to 50% in a bid to boost flagging occupancies following the sharp downturn in South Africa's tourism trade.

The biggest discounts appear to be in Cape Town's luxury four and five star market which has been hard hit by the drop in corporate travel and conference markets.

Local and international leisure travellers have also become more cost conscious and are trading down to cheaper hotels.

An internet shows that a number of four star Protea hotels including the Victoria Junction at the V&A Waterfront and the President on the Atlantic Seaboard now offer rooms for less than R700/night.

At the four star Best Western in Cape Town's inner city, rooms are priced as low as R550/night while starting rates at the five star Ambassador Hotel in Bantry Bay are down to R800/night. A year ago, one could not get a room at the Ambassador for less than R1 400/night.

Meanwhile, Sol Kerzner's new five star One & Only Cape Town hotel at the V&A Waterfront has been forced to lay off 50 staff less than four months after the luxury hotel's much-trumpeted opening.

JSE-listed hotel fund Hospitality Property Fund recently warned that its earnings will be down 20% to 30% for the six months to June 2009 on the back of an "unprecedented downturn" in the travel trading climate in recent months.

Hospitality's portfolio includes a number of Protea and Holiday Inn hotels as well as the Radisson at the V&A Waterfront, Mount Grace in the Magaliesberg and Champagne Sports Resort in the Drakensberg.

Latest available data from Smith Travel Research's (STR) global hotel benchmark survey confirms that South African occupancies and revenues are under pressure.

According to STR figures, hotel occupancies across South Africa dropped by 15.1% in the first four months of 2009 year-on-year while revenue per available room (Revpar) was down 11.3% over the same time.

Although industry players say that recent sporting events such as the Indian Premier League (IPL), the Confederations Cup and Lion's rugby tour lifted May and June occupancies, hotel trading figures dipped again in July.

Debt counselling organisation Consumer Assist warned that more job losses are expected in Cape Town and Durban's hospitality industry over the coming months as the recession continues to bite into corporate and leisure travel budgets.

Job losses mount

Consumer Assist CEO André Snyman said its Cape Town office was dealing with a growing number of debt counselling applications from people who have lost jobs in the hotel, guest house and conference industries.

"The sudden spikes from the tourism industry is worrying because it has become a bedrock of the Western Cape and KwaZulu-Natal job creation sector and a major income earner for South Africa".

Snyman said it appeared that prices at many South African hotels and restaurants remained artificially high, in the hope of a 2010 Soccer World Cup bonanza.

Some establishments have out-priced themselves for the domestic tourism market and forgotten that foreign visitors are also cutting back on travelling budgets due to the global recession, he said.

Latest Statistics SA figures show that the number of foreign visitors (excluding Africa) to South Africa dropped 12.5% in March 2009 year-on-year, with 27% fewer tourist arrivals from German and 18% fewer from the UK.

Alan Vels, former MD of Three Cities and CEO of newly formed hotel management group Signature Life Hospitality, said the sudden and sharp turnaround in hotel trading conditions since end-2008 will force the South African hospitality industry to find clever ways to cut costs.

"For instance, why keep a hotel's kitchen open on Sunday evenings when occupancies are typically at their lowest, especially if you are located within a busy tourist hub with easy access to other restaurants"," said Vels.

South African hotel developers and operators need to adapt to travellers' changing needs.

"There is a new kind of traveller who has become accustomed to good service and stylish lodging but doesn't necessarily need marble fountains to make their stay memorable."

The hospitality industry also needs to rethink the way they advertise and sell their products.

"Discerning travellers today use the internet to book hotel accommodation so it is unnecessary to spend millions on traditional sales and marketing channels like call centres."

Vels said bigger is no longer better. Large hotels with a substantial cost base are the ones struggling most in the current downturn. Smaller hotels that offer an intimate experience and an authentic personality are the way to go, he said.

Signature Life Hospitality operates three hotel brands including Signature Hotels, Quarters and Life Hotels with some 25 hotels (recently opened or under construction) in its stable across South Africa, Mozambique and Madagascar.

true but there are still many ridiculous prices. the protea hotel near tygervalley is like R700 a night and some of the city lodges in bellville R600 a night...what are these people smoking?

700 Rands for a simple Protea hotel? That's way overpriced.

Ive been sayig this for years about sa hospitality industry, old properties, over priced rates and bad service. Everyone I know who trave;ls there for business has the same story to tell, ripped off and not even an atempt to make it a stary to remember

Johannesburg used to have a near-800-room hotel, but now that has been vacant for several years. Johannesburg's largest now has 450 rooms. I wish Johannesburg could build a 700+room hotel in the Sandton area.

Most hotels being built in South Africa have no higher than 200 to 300 rooms. That means that all hotels (and other buildings and structures) in South Africa and most other countries in the Commonwealth of Nations are economy-sized. South Africa will never have any large hotels built again. Also, does South Africa even have any residential hotels?

Interesting look at hotel capacity in SA's main cities. Note the criteria listed below.

Alot of interesting comment to come out of this. Its remarkable the tiny size of the 3star and below market in Cape Town, this is definately an area that needs balancing. However good growth across all 3 of the major cities.

SA hotel capacity growth - tracking real factors

By: Kamil Abdul-Karrim

The growth in South African hotel industry capacity is based extensively on the unprecedented economic growth experienced over the decade leading up to the global contagion, which was ignited in September 2008 and which resulted in the pent-up demand for hotel accommodation all but dissipating in the wake of the economic meltdown. It is a common misconception in the market that the 2010 FIFA World Cup has motivated this increase.

While the prevailing capacity growth in hotel rooms is widely reported on, with conflicting viewpoints being expressed, a major challenge is addressing the unsubstantiated and unspecified basis of commentaries and reports on the South African hotel industry inventory capacity. Generally these are fraught with inaccuracies and misrepresentations, presenting somewhat of a 'dog's breakfast' perspective on one of South Africa's hallmark industries that compares with the best the world has to offer.

As specialised consultants to the broader South African tourism and hospitality Industry, the group maintains an empirical database of hotels operating in the country.

Current data

Its data is based on currently operating hotels that are larger than 30 rooms and excludes guest houses, lodges, hostels, bed-and-breakfast establishments and other 'short-term' accommodation establishments not specifically defined as hotels. In fully comprehending the current capacity in the hotel industry, it has also incorporated hotel projects currently under construction that will be coming on-line in the short-term.

http://mars.bizcommunity.com/c/1006/50661.jpg

Source: PGTHC Analysis

The table above reflects that inclusive of all hotel projects currently under construction, South Africa has approximately 66 000 rooms in the formal hotel sector. Data analysed over a period of nine years reflects that growth in capacity was static over the period 2002 to 2007 but accelerated over the period 2008 to 2010, with a substantial surge in 2010. Measuring the current inventory to 2007 levels reflects that there has been an overall increase of 17.4% with a substantial increase in the 5 Star segment (28.5%) and 19.7% and 12.6% respectively in the 4 and 3 Star segments. Albeit that the 1 and 2 Star segments come off an extremely low base, very limited growth is evidenced in these segments.

World Cup not the catalyst

It is naïve to believe that the World Cup has motivated the capacity increases and that an industry, which enjoys the typical life cycle of 20 years, would be as irresponsible as to create capacity for a 31-day event. The Achilles heel of the South African hotel industry is the demand-reactive nature of the industry - resulting in the prevailing growth spurt in capacity over the past three years. The hotel industry naturally enjoys a generally direct relationship to economic stability and growth being experienced both in South Africa and internationally.

Until the second half of 2008, South Africa's economy had been in an upward phase of the business cycle since September 1999 - the longest period of economic expansion in the country's recorded history. During this upswing (based on data for the period up to the fourth quarter of 2007), the country's annual economic growth rate had averaged over 4%. In the decade prior to 1994, economic growth averaged less than 1% per annum.

GDP impacts industry

Until the global economic crisis, South Africa's real gross domestic product (GDP) rose by 3.7% in 2002, 3.1% in 2003, 4.9% in 2004, 5% in 2005, 5.4% in 2006, the highest since 1981, and 5.1% in 2007. Economic growth in 2008 declined to 3.1% as South Africa entered a recession, however, from the first quarter of 1993 to the second quarter of 2008 the country enjoyed an unprecedented 62 quarters of uninterrupted economic growth. As the crisis made itself felt, GDP contracted in the third and fourth quarters of 2008, officially plunging the economy into recession. This contraction continued into the first and second quarters of 2009, with GDP growth at -6.4% and -3% respectively.

This translates into a compounded GDP growth of 29.7% over the period 2002 to 2008, with growth in hotel capacity over this period of 21.8%, as measured in 2010. While there is a prudent time lag between hotel inventory capacity reaction and the prevailing economic bullishness, it must be understood that the period from inception to planning and construction of a hotel project is typically between 30 - 36 months.

As a result projects initiated in 2005 after fair comfort that the economic bullishness was sustainable and that the prevailing pent-up demand was reaching saturation levels, only started coming on-line in 2008, resulting in the current accelerated increase in inventory. The additional inventory being introduced would have by most measures been absorbed by the pent-up demand, but for the economic downturn from late 2008.

Cape Town's growth

http://mars.bizcommunity.com/c/1006/50662.jpg

Source: PGTHC Analysis

The Greater Cape Town hotel industry experienced 19.5% increase in overall capacity with the strongest growth in the 5 Star segment at 51%. Growth at the 4 Star level was 18.6%, while the remaining segments were static. A major contributor to the growth in especially the 5 Star segment has been the large scale introduction of luxury hotel apartments. While a proportion of these were always planned as apartment hotels, a substantial proportion of these were conversions from planned luxury residential units to hotel apartments resulting directly from distressed residential developments due to the prevailing credit-crunch.

Interestingly, recent comments from Cape Town Routes Unlimited, the marketing arm for the city, on the Southern African Tourism Update Online (Wednesday, 19 May 2010) mentioned that capacity in Greater Cape Town increased by 40% compared to the group's measured and substantiated 19.5%. The article further referred to the Greater Cape Town hotel room capacity being 50 000 compared to the empirically substantiated capacity of 11 584 hotel rooms.

Johannesburg capacity

http://mars.bizcommunity.com/c/1006/50663.jpg

Source: PGTHC Analysis

The Greater Johannesburg hotel industry experienced 28.6% increase in overall capacity with the strongest growth in the 4 Star segment at 43.3%, while growth at the 5 Star level was 20.7%. The 3 Star segment increased by 30.4%, while the remaining segments were static.

Gauteng accounts for nearly 34% of South Africa's total GDP and is larger than almost every other African economy, producing approximately 10% of Africa's total GDP. With Johannesburg being the epicentre of the province, the economic bullishness experienced in the region translated into direct increase in pent-up demand, especially over the period 2005 to 2007, and moving into 2008, sparking-off the substantial increase in hotel room capacity.

Pretoria - growth in 3 Star

http://mars.bizcommunity.com/c/1006/50664.jpg

Source: PGTHC Analysis

Pretoria has seen very limited growth in hotel room capacity and has been secondary to the main travel cities of Cape Town, Durban and Johannesburg. However, 2010 will see the introduction of substantial new inventory - albeit only at the 3 Star level.

Largest growth - Durban

http://mars.bizcommunity.com/c/1006/50665.jpg

Source: PGTHC Analysis

The Greater Durban hotel industry experienced 35.6% increase in overall capacity, recording the largest growth in the country albeit off a fairly low base and a historically static inventory base. The strongest growth is in the 5 Star segment at 42%, with growth at the 4 Star level 40.5%. The 3 Star segment increased by 24% while the remaining segments were fairly static. Durban remains a major industrial and manufacturing province, which has also faced an economically driven pent-up demand. However, another major contributor has been the established shift from the CBD to the Umhlanga Ridge area as well as new hotel developments in the Ballito and Umhlanga region, driven by the relocation of the airport coupled with the growing business and leisure popularity of the North Coast region.

Hotel industry not irresponsible

This analysis and interpretation of the prevailing hotel room capacity growth presents a substantiated overview of the current supply dynamics, and while the difficulties facing the hotel industry are consistently blamed on over-capacity in the industry, due cognisance needs to be taken of the economic decline both nationally and globally.

While both capacity increases and economic volatility face their own individual gestation periods, what needs to be understood is that the industry has largely not been irresponsible as is often intimated by swashbuckling commentators with limited understanding of the industry and its drivers.

Developers could go back to apartments

The hotel industry is a long-term commitment and suggesting that capacity growth is aligned purely to 2010 opportunism is irresponsible and sensationalist. The group believes there will be some attrition after the event, and as the luxury residential market improves, developers, who traditionally are in for the short-term gain on developments, will retire to their normal business of selling apartments and not operating them as hotels. The hotel industry will again revert to being a responsible and gratifying business operated by impassioned specialists committed to serving people.

[1 Jun 2010 06:52]

Ive been sayig this for years about sa hospitality industry, old properties, over priced rates and bad service. Everyone I know who trave;ls there for business has the same story to tell, ripped off and not even an atempt to make it a stary to remember

Yes that is certainly my experience in SA hotels (and I stay 5*). Even when its brand new, shiny and pretty pricey the service quality is mixed (ie some brilliant people, but then someone will be rude/ignore you or wander into your room inspite of a DO NOT DISTURB sign); and when something goes wrong (and it will) you are stuck talking to people who largely havent a clue what they are doing and you have to start yelling in order to get the hotel manager out of ivory tower to fix things. It would be more tolerable if it was more competitively priced.

^^ and how is that different from my experiences in Europe and Asia?

^^ and how is that different from my experiences in Europe and Asia?

Maybe go 5* next time?

My experience in Asian hotels has been virtually perfect service. Usually embarrassingly fawning. I dont stay in hotels in Europe that much, but my recent experience in Greece was similarly excellent. Our plane was delayed outbound and the hotel instantly arranged us room for 4 hours with a cot for the baby, handled our luggage etc - immediately and for free.

I have been to lots of hotels and very seldom had individuals lose my booking, wander into my room through a do-not-disturb; not know how to make even a reasonable coffee; ignore me at reception for minutes on end; have the conceige not have a clue on what is going - outside of SA. This all happened in one overnight stay at MonteCasino where I paid R2650 a night if I remember. Great infrastructure though. Would I stay again? No.

wow°!! awesome :)

Cape Town's growth

http://mars.bizcommunity.com/c/1006/50662.jpg

Source: PGTHC Analysis

The Greater Cape Town hotel industry experienced 19.5% increase in overall capacity with the strongest growth in the 5 Star segment at 51%. Growth at the 4 Star level was 18.6%, while the remaining segments were static. A major contributor to the growth in especially the 5 Star segment has been the large scale introduction of luxury hotel apartments. While a proportion of these were always planned as apartment hotels, a substantial proportion of these were conversions from planned luxury residential units to hotel apartments resulting directly from distressed residential developments due to the prevailing credit-crunch.

Interestingly, recent comments from Cape Town Routes Unlimited, the marketing arm for the city, on the Southern African Tourism Update Online (Wednesday, 19 May 2010) mentioned that capacity in Greater Cape Town increased by 40% compared to the group's measured and substantiated 19.5%. The article further referred to the Greater Cape Town hotel room capacity being 50 000 compared to the empirically substantiated capacity of 11 584 hotel rooms.


[1 Jun 2010 06:52]

4 star is at least 5,500 unless some hotels have suddenly disappeared.
My actual count is closer to 6,500.



beds beds beds. Its 50,000 beds NOT rooms! Across ALL categories of accommodation.

The 40% is NOT hotel room growth but compared new hotel rooms between 2007-2010 compared to a similar period before that.