Cape Town is fast becoming Africa’s golden investment gateway as its booming hospitality and real estate markets fuel a new era of economic vibrancy and global interest. 

As the continent prepares for the highly anticipated Future Hospitality Summit Africa (FHS Africa), scheduled for June 17–19, the city’s stellar growth trajectory is setting the stage for high-stakes deal-making and bold investor moves.

Once primarily known for its natural beauty, Cape Town is now commanding attention for its financial appeal, with industry players hailing it as a rising powerhouse in tourism, development, and real estate.

Hotel performance in the city has soared, with April 2025 data from CoStar showing an occupancy rate of 72.5%, the highest in South Africa. Revenue per Available Room (RevPAR) jumped 20.1% year-on-year, reaching ZAR 2,286.63, while the Average Daily Rate (ADR) surged by 17.7% to ZAR 3,145.96. According to Philip Wooller, CoStar’s Area Director for the Middle East and Africa, these numbers reflect more than a post-pandemic rebound. “Cape Town is not only back on the global travel radar, it’s commanding a premium,” he said.

The growth extends beyond city limits. The Western Cape posted a 64.6% hotel occupancy rate, comfortably ahead of the national average of 56.3%, with Cape Town’s luxury segment leading the way at 66.2%, outshining other major South African cities.

But it’s not just beds and bookings making headlines. Cape Town’s real estate market is thriving, with average property values hitting R13,400/sqm in 2024/25, leaving Johannesburg and Pretoria in the dust.

Wayne Godwin, CEO of JLL Africa, attributes this rise to a combination of factors: “A robust tourism pipeline, investor confidence, and a renewed focus on mixed-use and lifestyle-driven developments. The city’s appeal is both emotional and financial; it makes sense to visit, and increasingly, it makes sense to invest.”

This momentum sets the perfect backdrop for FHS Africa, the continent’s premier hospitality investment conference. Known as a launchpad for major projects and partnerships, this year’s event is expected to be buzzing with activity as international hotel brands, financiers, developers, and government officials gather to strategize, network, and close deals.

“Cape Town is buzzing,” said Andrew McLachlan, Founder & MD of Develop Hotels Inc. “I’m tracking over 40 new hotel projects, from boutique stays, aparthotels to urban resorts. With global brands and bold independents circling, FHS Africa couldn’t be better timed to help investors, developers, and owners align brand, business models, and strategy for serious long-term value.”

Karim Cheltout, SVP of Lodging Development at Marriott International, Middle East and Africa, echoed the optimism: “The anticipated addition of Morea House, Autograph Collection later this year reflects this momentum and the market’s appetite for distinctive, high-quality hospitality experiences.”