The hotel industry in South Africa is showing strong signs of revival and transformation. After the severe disruption of the COVID-19 pandemic, the sector has begun not only recovering but also adapting — embracing new business models, guest expectations and sustainability imperatives.
A Growing Industry
Hotel performance across the country has improved:
Occupancy rates climbed to around 61% in 2025, higher than the previous year.
The average daily rate increased by about 6%, showing guests are spending more on comfort.
The sector’s income rose by over 12% in early 2025.
The Western Cape continues to lead the recovery, while other regions like KwaZulu-Natal are steadily improving.
Key Trends Shaping Hotels
1. Smarter Technology
From online check-ins to automated guest services, hotels are using technology to improve efficiency and guest experience.
2. Eco-Friendly Operations
Many hotels are investing in solar power, recycling, and sourcing locally — saving money and attracting eco-conscious travellers.
3. Bleisure Travel
Business and leisure trips are merging. More guests are extending work trips to relax, and digital nomads are booking longer stays.
4. Mid-Range Growth
3 to 4-star hotels are performing well, offering great value for money while keeping quality high.
5. Rising Competition
With new hotels opening, standing out through great service, creativity, and memorable experiences is more important than ever.
Challenges to Overcome
Hotels still face rising costs, load shedding, water shortages, and staff shortages. Keeping up with guest expectations and offering consistent quality across regions also remain challenges.
Opportunities Ahead
The future is bright for South Africa’s hotel industry.
Focus is on leisure destinations like Cape Town, Drakensberg, and the Garden Route.
Go green — sustainability reduces costs and builds trust.
Use technology to make stays seamless.
Promote local and domestic travel to keep rooms filled year-round.
Create experiences, not just stays.
South Africa’s hotels are not just recovering — they’re evolving. Travellers want comfort, value, and authentic experiences. The hotels that adapt, innovate, and embrace change will define the future of South African hospitality.
