Innovative styles of accommodation such as ‘aparthotels’, or serviced apartment-style hotels, for both business and leisure travellers are gaining popularity.
This is helping the hotel development market in Cape Town to stay resilient despite a tough economy and the resulting effects of the drought.
“Cape Town’s tourism resilience and attractive rate of return are making property buyers move to other, non-traditional options of buying property, like buying an apartment in a hotel property and then leasing it back to the hotel and enjoying a good monthly return that mirrors the uptick of local tourism,” says Wayne Troughton, Managing Director of HTI Consulting, a development consultant for the hospitality sector across Africa and the Middle East.
An example of this is Romney Park Luxury Apartments, a former five-star all-suite hotel in Green Point. After a recent multimillion-rand redevelopment, Romney Park now offers fully furnished apartments for sale to local and international buyers. They are then leased back to a hospitality management company, The Stay Collection, to operate as self-contained hotel apartments, while maintaining the luxury of a five-star hotel.
Troughton adds: “Aparthotels offer a more flexible product, whether guests are staying on a short- or long-term basis, giving them more space and the opportunity to self-cater while also enjoying the food and beverage amenities on the property like a restaurant or room service. And prices aren’t vastly different when compared with traditional hotels, so it represents a greater value for spend.”