Cape Town’s R1bn ‘super-luxury’ Quay 7 hotel to be complete by March

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27-06-2025
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Moneyweb
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V&A Waterfront’s joint owners, Growthpoint Properties and the PIC, pump more money into leisure development.

One of the most expensive hotels to be built in South Africa since the turn of the century – Cape Town’s R1 billion Quay 7 ‘super-luxury’ hotel, with 142 keys and six serviced apartments – is set to be completed by March next year.

JSE-listed Growthpoint Properties confirmed the timeframe of the hotel, which is currently under construction at its iconic V&A Waterfront precinct, in a broader group investor update on Thursday.

Growthpoint, which jointly owns the V&A Waterfront with the Public Investment Corporation (PIC) on a 50/50 basis, has been loath to share full details of the development or which international brand will operate the new hotel.

However, Moneyweb first reported last year that it could be an Edition Hotel – part of US-based hotels and leisure giant Marriott International’s new “super luxury” or 6/7 star ‘designer lifestyle’ offering.

This was after Growthpoint execs let the cat out of the bag during its annual results presentation media briefing in September 2024 by mentioning that Marriott is the likely operator.

Moneyweb sent questions to Growthpoint late last year and asked V&A Waterfront management for comment several times after Growthpoint said queries need to be directed to the Waterfront. However, V&A Waterfront CEO David Green and other officials have said they cannot comment at this stage as the hotel operator agreement has not been finalised.

According to a broader V&A Waterfront development presentation that Moneyweb has seen, the hotel will be a “contemporary luxury lifestyle hotel”. It is located on Quay 7 and will be owned by the V&A Waterfront but operated under an international management agreement.

Both Green and Growthpoint have, however, confirmed that the hotel’s development cost “is around R1 billion”.

For a hotel development that will have fewer than 150 keys and apartments, this highlights the luxury and designer of the project. The V&A Waterfront apparently roped in international architects on the project, with the unique design having a distinctly Scandanavian look.

It also seems to be a “fast-track” construction project for the V&A Waterfront, with three construction cranes currently on site and building taking place at a speedy pace.

For context, the Sol Kerzner-developed One & Only Hotel at the Waterfront was built between 2005 and 2009 (Dubai World days) at a cost of around R600 million, and it has around 131 keys; while the Club Med Resort on the KZN North Coast, being developed by Collins Residential, is an investment of over R2 billion. However, the latter is an all-inclusive resort on a big site that will include 400 keys and villas.

This means the Quay 7 hotel development will be “uber luxury” and target wealthy foreign tourists too (on a per key development cost basis).

Growthpoint – SA’s biggest listed real estate investment trust (Reit) with properties across the country as well as offshore – simply noted in its latest investor update on Thursday that “development of the Quay 7 luxury hotel is well progressed to complete by March 2026”.

This was the only mention of the development in the Sens.

However, the Reit gave a broader update on developments at the V&A Waterfront, including the R1 billion overhaul of the Table Bay Hotel into an InterContinental-branded property. The hotel is currently closed for renovation and expansion. It is worth noting that the new Quay 7 hotel is being developed adjacent to it.

*The Table Bay Hotel closed at the end of February 2025 for a major refurbishment and conversion to a 306-key hotel. The hotel will operate under a franchise agreement with InterContinental Hotel Group and be managed by Sun International,” Growthpoint said in Thursday’s Sens update.

The Table Bay Hotel is scheduled to reopen in December 2025 (Moneyweb understands that around 200 rooms will be opened as part of a phased reopening).

Meanwhile, Growthpoint commented in the update: “Hotel demand remained strong, supported by tourism and events. Average daily rates increased by 16% compared to last year’s period [first 9 months of its financial year].”