One of the overlooked stories of the economic success of the Cape Town CBD hospitality scene is the popularity of independent hotels.
This popularity mirrors trends seen in global cities like Lisbon, Barcelona and Melbourne, all known for fostering creative, design-forward hotel developments in walkable urban centres. As Cape Town continues to gain international attention – recently voted the best city in the world not only by The Telegraph’s 20 000 global travellers but also in Time Out’s global survey of 18 500 city dwellers – its independent hospitality scene looks set not just to grow, but to lead.
The iconic Grand Daddy Boutique Hotel, with its rooftop trailers and retro cinema, has long been a favourite for travellers seeking a one-of-a-kind experience in the city centre. Not far away, Cape Town Hollow Hotel offers a quieter charm and a bird’s eye view of the iconic Company’s Garden. Just around the corner, the five-star Pepperclub Hotel combines urban sensibility with luxury touches.
Newer, stand-out entrants to the independent club include Labotessa Luxury Boutique Hotel on Church Square, which boasts seven luxury well-appointed suites; the Cape Heritage Hotel, housed in an 18th-century building; and the trendy, edgy Gorgeous George in St Georges Mall. The latter is part of the Design Hotels group, which offers a curated collection of independently owned and operated hotels worldwide. Joining the wave of newer entrants is The Trade Hotel, which opened on Shortmarket Street late last year. This 50-room hotel stands out with its vibrant design aesthetic.
CHARM & AUTHENTICITY
“Today’s travellers are looking for more than just a place to stay – they want to feel connected to the destination. Inner-city independent hotels are increasingly the first choice for leisure and international visitors seeking a true sense of place, says Anja du Plessis, Cape Heritage Hotel general manager.
Tobias Alter, owner of Gorgeous George, concurs. “In the past few years, there’s been a noticeable shift in traveller preferences toward independent and design-driven hotels that offer authenticity and a strong connection to their surroundings,” he states.
Johan du Plessis, co-founder of Labotessa, believes smaller hotels offer a more intimate and rewarding experience. “Guests like to visit our hotel for the unique and personalised experience we offer, and they love our focus on design, local culture and heritage,” he says.
All hoteliers agree that this aligns with a broader post-pandemic trend of travellers seeking meaningful experiences that prioritise individuality, connection and cultural immersion.
Importantly, independent hotels are also inviting Capetonians into the city, with many offering rooftop bars, cultural events, and dining experiences that contribute to a vibrant downtown culture. “It’s about celebrating what the inner city has to offer,” says Johan du Plessis.
YEAR-ROUND DESTINATION
According to property experts, the interest in independent hospitality reflects the maturing appeal of Cape Town as a year-round destination. With many new entrants to the market, developers are betting that Cape Town’s mix of heritage, design culture and rising international interest will continue to deliver long-term returns, despite slower yield periods in the early years of operation.
“Most international travellers want to experience the heart of the city,” explains Johan du Plessis, “as this is where history, culture and design blend together.”
Anja du Plessis agrees, saying the Cape Heritage Hotel has a compelling historic narrative which makes visitors feel more connected to the city. “We aim to create a memorable experience that reflects the soul of Cape Town, something standardised hotels simply cannot replicate,” she says.
PROMISING PROSPECTS
The hoteliers all agree that prospects for the small, luxury hotel sector are promising. “We’re seeing steady growth, especially from international guests booking directly,” says Alter.
Independent hotels in the CBD recorded an average of 74 % occupancy from December 2024 to February 2025, according to RoomRaccoon, with peak weekends reaching 85 %. In addition, ADR climbed to R2,920, an 11 % increase from the previous summer, while ancillary spend on tours, transport and curated experiences added nearly R42 million in extra revenue across the city centre’s independent hotels.
This success has not occurred in a vacuum. “The Cape Town Central City Improvement District (CCID) has played a key role in revitalising the CBD, ensuring it is safe, clean and welcoming for both tourists and residents, creating the right environment for independent hotels to flourish,” asserts Johan du Plessis.
For Cape Town’s CBD, the popularity of independent hotels is a sign of confidence, creativity and a thriving downtown economy.
