Radisson Hotel Group to Double South Africa Portfolio to 26 by 2030
Radisson Hotel Group is bullish on South Africa's tourism future, planning to double its portfolio to 26 properties by 2030. The group is addressing funding challenges with innovative structures and profit guarantees, aiming to unlock growth and meet credit committees' concerns.
Radisson Hotel Group is targeting key cities like Johannesburg, Cape Town, and Durban for expansion. In Cape Town, it aims to tap into growing luxury demand with Radisson Blu, Radisson Collection, and Park Inn by Radisson properties. Beyond primary cities, the group sees opportunities in secondary markets with supply-demand mismatches, such as Tyger Valley, George, Stellenbosch, and others.
The group's expansion strategy is backed by South Africa's rebounding hotel market. Revenue per available room (RevPAR) has climbed nearly 10% to R995, and occupancy reached 58.6%. Radisson Hotel Group is considering a Radisson RED hotel in Midrand and an 80-room Radisson Collection hotel in Gauteng to cater to unmet luxury demand. The group's confidence in South Africa's tourism trajectory is evident in its plans to set new accommodation standards in underserved destinations.
Radisson Hotel Group's ambitious expansion plans in South Africa hinge on successful execution. However, with rising RevPAR, untapped secondary markets, and innovative funding structures, the opportunity is real. The group's commitment to setting new accommodation standards in underserved destinations signals its confidence in South Africa's tourism future.
