International investors flocking to buy these properties in South Africa to run successful businesses

This was highlighted by Peter Rowell, a hotel broking specialist with the Seeff Property Group, who noted that there is growing interest in tourism and hospitality products from investors.

He said International and local investors are buying up properties to run successful businesses as confidence in the local tourism market has surged. 

According to Peter Rowell, there is growing demand for tourism and hospitality assets across the country, with a notable rise in key performance indicators like occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR).

“Significant successes have been reported this year, all of which speak to the confidence returning to investing in the sector,” said Rowell. 

National hotel occupancy now sits at 59.5%, while RevPAR has increased by 16% year-on-year. 

The figures are even stronger in the Western Cape, South Africa’s most sought-after tourism market. In April, the province recorded an average occupancy of 72.5% and a 20.1% rise in RevPAR.

Rowell noted that high-end resorts and hotels are thriving, with Southern Sun reporting increased earnings, particularly in the Cape but also in Gauteng. 

Major international hospitality groups, such as Radisson, IHG Hotels & Resorts, and Protea Hotels by Marriott, are also expanding their presence in the country. 

Club Med is also constructing its first African resort north of Durban, which is another clear vote of confidence in South Africa’s tourism potential. Rowell highlighted that the country is among the top travel destinations in Sub-Saharan Africa. 

The Cape, in particular, continues to attract international acclaim, frequently named one of the best cities in the world by travel authorities such as Condé Nast Traveller and the Telegraph Travel Awards. 

“This global recognition boosts its appeal for tourism-focused investment. The opportunity for investors is broad. These can range from big brands to boutique hotels, five-star guest and safari lodges, wine estates, and more,” said Rowell. 

New trend adding to the demand

Both local and international investors are increasingly entering the market, with buyers hailing from the UK, France, Germany, and, more recently, the Middle East.

He added that improved profitability and a strong growth outlook in South Africa fuel confidence and open the door for diversification in investment portfolios. 

He explained that many hospitality products are sold off-market, with investors often seeking specific brands or establishments. 

However, hotel investments require a nuanced approach due to their complexity. Valuations depend on various factors including financial performance, location, property quality, and the strength of management.

Adding to the growing demand is a newer trend reshaping a different segment of the property market, retirement living. 

Garry Reed, Managing Director of Evergreen Lifestyle Villages, said the rise of “hotelification” is transforming retirement communities in South Africa and abroad. 

This movement incorporates luxury hotel-style amenities into retirement, creating vibrant communities that prioritise lifestyle and comfort.

“The hotelification movement is transforming retirement living by blending the comforts of home with luxury hotel-style amenities,” said Reed. 

Developers are designing retirement villages with communal areas, top-tier recreational facilities, and a strong focus on social engagement. 

Residents have access to in-room dining, health and wellness programmes, concierge services, and a calendar of social events, essentially turning retirement into a resort-like experience.

“We are leading the hotelification trend on home soil by offering residents a retirement experience that seamlessly blends hotel-like luxury, convenience, and independence,” said Reed. 

Hospitality is becoming one of South Africa’s most dynamic and promising sectors, and it’s drawing many international investors who see long-term value and growth.

Issued on BusinessTech by Malcolm Libera | https://businesstech.co.za/news/property/833006/international-investors-flocking-to-buy-these-properties-in-south-africa-to-run-successful-businesses/