South Africa: V&A Waterfront to invest R380 million in a new hotel

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Cape Town’s V&A Waterfront will soon be home to international hotel group Carlson Rezidor’s first new concept in Europe, Africa and the Middle East (EMEA). The Radisson Red in the Silo District is on track to welcome its first guests towards the end of 2016. The new upscale lifestyle select concept hotel is being developed and funded by the V&A Waterfront at a total capital cost of R380 million.

David Green, CEO of the V&A Waterfront, said, “A concept as fresh, exciting and innovative as Radisson Red will perfectly complement the existing hotel offering at the V&A Waterfront. I have no doubt that the proposed innovations of the concept will be incredibly well received by business and leisure travellers alike and make their hotel experience unlike any other.”

This hotel straddles the 3 and 4 star segments. According to a Pam Golding Hospitality Hotel Market Overview, the 3-star market in Cape Town is the best performing, with an annual occupancy of 71.5% while the 4-star market remains the largest in terms of room nights sold. The 3-star sector has seen uninterrupted occupancy growth, with minimal supply entering the market in recent years.

Cape Town will have lesser number of rooms entering the market than the supply between 2007 and 2010, when almost all supply was positioned in the 5-star category, although it is increasingly being supplied intensely.

The report concludes that with the additional supply, the market will enjoy almost uninterrupted demand growth, increasing to 71% in 2016.

Ideally positioned for the business traveller, the leisure traveller is not discounted. South Africa’s tourism industry is expected to grow 3.4% this year, faster than the forecast 2% in the wider economy, according to new research released on Tuesday by the World Travel and Tourism Council.

Nestled between the Zeitz Museum of Contemporary Art Africa (Zeitz MOCAA) and the office and housing developments that will comprise the Silo District, the Radisson Red will be tech and design savvy, relevant and pragmatic, and focus on creating an experience that is truly guest-centric. The hotel’s offerings will include flexible, functional guest rooms, paperless check-in, and 24/7 deli and bar, and will total 235 rooms.

Developed in partnership with dynamic international hotel group Carlson Rezidor, ‘Radisson Red’ is a new upscale lifestyle select brand in the group’s portfolio, and is perfectly suited to Cape Town’s most visited destination, the V&A Waterfront.

“We are delighted to announce the first Radisson Red in EMEA in a location as prominent as the V&A Waterfront – giving our new brand both local and global visibility, and being a perfect match with the brand’s values: Radisson Red is inspired by the trends and lifestyle of the Millennium and is totally tapped into modern, high-octane and high-tech travellers”, said Neumann.

Martin Kearns, Development Executive at the V&A Waterfront has said the Radisson Red hotel will host international and local business travellers.

The V&A is currently home to 6 five-star hotels, 2 four-star hotels and 2 three-star hotels. The Radisson Red will be the first new build since the One & Only in 2009. Queen Victoria will be the newest of the Waterfront hotels after the existing building was refurbished in 2011.

Carlson Rezidor currently operates five hotels offering almost 800 rooms globally, all under the Radisson Blu, Radisson Red and Park Inn by Radisson brands. Recently, Tsogo has announced plans to construct a hotel complex in Cape Town