A Whole New Exciting Sector

by Johannes Maree


AirBnb

The last few months have opened my eyes to a whole new industry – the hospitality sector in the Cape Town CBD.  In retrospect, the fundamentals make sense:

  • Just about every year, Cape Town is voted as one of the top tourist destinations in the world.
  • Cape Town is small – so the supply of accommodation is only so big.
  • There aren't many open spaces to build.
  • It's scenic
  • …and it's frequented by tourists throughout the year, not only the summer months.

At Destinata Capital, our registered Section 12J Fund, we've started to invest in this sector, and to illustrate what I've been talking about, I'm going to highlight some stats from the very 1st investment we made, as an example.  A modest 54 square metre unit in the City Centre purchased for R1.5m (fully furnished), but situated close to some great amenities – Truth Coffee, voted the world's number 1 coffee shop in 2016, being one of them, situated a mere 50m down the road.

We took occupation in December 2018, and some of the stats have been as follow (I exclude February 2019 as this month was used to do a fair bit of maintenance on the unit):

  MONTH

  BOOKED NIGHTS

  OCCUPANCY

  GROSS REVENUE

  JANUARY 2019

  27

  87%

  R19 989

  MARCH 2019

  26

  84%

  R17 070

  APRIL 2019 (TO DATE)

  25

  83%

  R15 073

  AVERAGES

  26

  85%

  R17 377

...




 
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