Investors buy into the rise of ‘aparthotels’
‘Aparthotels’ – privately owned apartments that are linked to a hotel offering – are increasingly popular with investors and tourists alike
It’s no secret that SA real estate as an asset class has performed relatively poorly over the past two years in terms of capital and income growth. But a few specialist subsectors of the market are still worth a punt, most notably student accommodation, logistics and self-storage. There’s also renewed investor demand for serviced apartments — self-catering units typically linked to a hotel offering and often referred to as "aparthotels".
That is particularly true for Cape Town, where a tentative revival in tourism is supporting the investment case for short-term, serviced accommodation. Latest figures from global hospitality database STR show that average occupancies for all graded hotels in Cape Town rose by 1.5 percentage points last year, to 65% (January to November, year on year)...