As at 31 March 2019 the city ended on 68% occupancy after a similar pickup of around 20% in occupancy seen in Feb 2019. March consistently gained 20% per month since tracking it from Dec 2018. It not surprising as it’s a traditional medium-high demand month. That rate however lost 18% of its value between 1 Jan and 31 March which is marked by nervous pricing in that lead time was short and uncertainty in the market thus reducing price when the booking pace slowed. This have happened in most of summer trading and we should learn from this ocurrance and hold rate but watch lead time instead.

April increased by 17% in occupancy from 27% in Feb to 45% by end March. The month however is quite soft compared to March and the ARR have increased from R1 100 to R1 280. We expect a drop in ARR value towards month end since demand for period before and after Easter is very slow.

May is in our sights and winter here (again so soon?). Occupancy weak at 17% and rate actually better than April this time at R1 183 but general feedback is that we will do 2018 figures +10%.

Our insights revealed hotels relying heavily on OTA’s and located outside the general CBD/V&A had a tougher time vs hotels within the CBD/V&A surrounds. Hotels with stronger diverse markets are doing higher occupancies vs LY but rates the same or lower resulting in the same bottom line.

Please note the insights data is collected from 16 000 available room nights. Various levels of hotels all around the CPT metro share their forward book and we can accurately portray the city’s forward book and changes in demand. We realise some upper segment hotels might not be close in numbers related to values quoted below but you should take into consideration the overall movement as the same change values will apply at ADR and Occ levels.
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