The V&A Waterfront has confirmed its intention to develop a mid-market, internationally-branded hotel in the forthcoming year.
According to Cape Town Tourism, the expected tourism growth in the City for 2014 will be between four and five per cent, while the United Nations World Travel Organisation estimated a global year-on year increase of 3.3 per cent per annum until 2030.
For Cape Town, the majority of source markets are European, while the biggest growth market is set to come from Latin America.
David Green, chief executive of the V&A Waterfront said: “’Given the growth in domestic, business and leisure tourism, coupled with consistent growth in the occupancy at our current hotels over the past 18 months, we believe the opportunity exists for a mid-market hotel development.’’
With more than 24 million visitors per annum, and recognised as an economic powerhouse that has contributed almost R200 billion to South Africa’s gross domestic product in the last ten years, the Waterfront is an attractive prospect for international hotel operators.
With the announcement of this development, an opportunity for a new operator is presented for the first time since the new build for the One & Only in 2009.
The newest of the Waterfront hotels is the Queen Victoria, the result of the refurbishment of an existing building in 2011.
The V&A is currently home to six five star hotels, two four star hotels and two three star hotels.
Within Cape Town, there are 24 five star, 54 four star and 20 three star hotels.
In all three classes compared in an independent report commissioned by the V&A Waterfront, the RevPAR figures for hotels at the Waterfront are much higher than those of surrounding areas, by premiums ranging from 52 per cent for five star, 71 per cent for four star and 95 per cent for three star.
Green concluded: “The V&A Waterfront continues to attract a premium in rates and higher- than- average occupancies, and we believe an internationally-branded and marketed hotel will add to the portfolio and meet the increasing demand for such accommodation.’’