Johannesburg enjoyed the highest level of occupancy for at least six years and strong ADR performance, with RevPAR growing by 16% in local currency. Unfortunately the performance of the Rand against the US$ masks this strong growth.
Marriott has announced plans to construct a flagship hotel at the Melrose Arch, which is a popular mixed-use development providing a live, work and play environment outside the central business district.
Johannesburg has seen a peaceful transition of power in 2016 that helps regaining corporate and investor's confidence. The hotel industry in Johannesburg should benefit from the advantageous exchange rate of the Rand. Hotel's performance is expected to show a positive trends and hotel values would rise by 14.4% in Rand terms and 24.3% in US dollars.