New R1 billion luxury hotel coming to Cape Town’s crown jewel

In an operational update for the nine months ended March 2025, Growthpoint said that the development of the luxury Quay 7 hotel is progressing.

The new hotel, which will comprise 142 keys, is anticipated to be completed by March 2026.

Although further details on the development remain limited, Moneyweb reported that the new development is likely to be an Edition Hotel, part of Marriott International’s international offering.

Although it has remained tight-lipped on the development, Growthpoint said the hotel’s development cost is around R1 billion.

Images from property expert Ash Muller also show that the development is progressing rapidly, with the V&A Waterfront continuing to be a significant asset for Growthpoint.

Growthpoint is South Africa’s largest real estate investment trust and owns 50% of the V&A Waterfront alongside the Public Investment Corporation (PIC), South Africa’s largest asset manager.

Growthpoint’s latest development showed that earnings before interest and tax (EBIT) at the V&A Waterfront grew by 23% compared to the same nine months in 2024.

This was driven by a full period of office rental from Investec Limited and the inclusion of The Portswood and The Commodore Hotels, now owned by the V&A.

Growth in EBIT was also supported by increased retail sales, which boosted turnover-based rental income.

Retail sales grew by 5%, even if this was slightly muted due to the exclusion of Easter holidays, which fell in April this year, and a reduction in sales of 2.5% while the Luxury Mall is under development.

Over a year, visitor numbers reduced by 2% as shopping habits continued to shift alongside the rise of online grocery sales. Total footfall still, however, stood at 24.5 million.

Tourism growth remained steady over the year to 31 March 2025, with international passengers arriving at Cape Town International Airport increasing by 6% and domestic arrivals increasing by 4%.

Hotel demand remained strong, supported by tourism and events. Average daily rates increased by 16% compared to last year.

The office space continued to perform well, with strong demand and zero vacancies contributing positively. Considering South Africa’s troubled office sector, zero vacancies is highly commendable.

The marine and industrial sector also saw improvement, driven by increased demand for casual berths and heightened cruise terminal activity.

The marine & industrial sector also saw improvement, driven by increased demand for casual berths and heightened cruise terminal activity.

Images and renderings

Other developments are coming

On top of the Quay 7 hotel, Growthpoint noted that there are several other developments that have commenced or were at an advanced stage during the nine-month period:

• The Union Castle Building (GLA of 2,678 sqm) was successfully reopened in December 2024, now home to a flagship Nike store and the highly anticipated Marble restaurant.
• Development commenced on the 3,759 sqm new luxury wing in the Victoria Wharf, with all space committed.
  • It is due to open between December 2025 and April 2026.
• The desalination plant was successfully commissioned and has been operational since mid-March 2025, generating 3.3kl of water daily.
• The Table Bay Hotel closed at the end of February 2025 for a major refurbishment and conversion to a 306-key hotel.
  • The hotel, owned by the V&A, will operate under a franchise agreement with InterContinental Hotel Group and be managed by Sun International. Reopening is scheduled for December 2025.
• Construction of the 5 Dock Road residential apartments commenced during the period, with completion expected in November 2025.
  • The strong demand is reflected in the 90% presales already achieved.

The development pipeline is being funded via a combination of shareholder and third-party funding.

As of 31 March, the V&A had R3.75 billion in committed third-party facilities, including R3.5 billion in green loans. R1.16 billion was undrawn at the reporting date.

Issued on BusinessTech by Luke Fraser | https://businesstech.co.za/news/property/829583/new-r1-billion-luxury-hotel-coming-to-cape-towns-crown-jewel/