SA hotels cash in higher rates and longer stays this summer, RoomRaccoon report reveals

(Cape Town, South Africa) 27 March 2025 – RoomRaccoon, a leading hotel management system for independent hotels, has released its annual South African Summer Hotel Performance Report 2025. Drawing insights from over 4,500 rooms across independent hotels, B&Bs, guesthouses, and lodges across the country, the report examines key performance trends from 1 December 2024 to 28 February 2025 and provides a year-over-year comparison to highlight shifts in the market.

According to the data, hotels are becoming increasingly adept at diversifying revenue streams beyond room bookings. Capitalising on upsell and cross-sell opportunities, RoomRaccoon users earned R48M in ancillary revenue over the summer months, marking a 27% increase from the previous year. The most popular add-on was food and beverage, followed by room upgrades, spa and wellness treatments, experience and activities and transport and parking. 

Other key findings include: 

• Longer stays on the rise: One-night bookings saw a 3% decline year-over-year, while stays of three, four, and five or more nights each increased by 1%, signalling a shift toward extended getaways.

• Increase in room rates: South Africa’s Average Daily Rate (ADR) climbed by 13% from the previous summer season, rising by R331 to an average of R2,784. This indicates that hotels are effectively commanding higher room rates.

• Guests are booking longer in advance: The average booking lead time extended by 10 days, from 41 days in summer 2023/2024 to 51 days this season. December 2024 had the longest booking window at 58 days, as travellers secured their festive season stays early.

“South African hotels have faced fierce competition from short-term rentals, but they’re proving their resilience with smart revenue strategies,” says Niels Verspui, Market Head of RoomRaccoon South Africa. “By optimising pricing and unlocking new revenue streams, they’ve boosted RevPAR by 4% and generated over R200K each in ancillary revenue.”

“An interesting trend is the rise of revenue from alternative spaces. In fact, 1 in 4 RoomRaccoon hoteliers has transformed underutilised areas into profit powerhouses by turning cafés into coworking hubs, offering wellness and pool day passes, and tapping into the demand for event and meeting spaces. The future of hospitality isn’t just about heads in beds, it’s about maximising every square meter.”

To unpack the hospitality industry’s performance and key trends, download RoomRaccoon’s South African Summer Report 2025.

About RoomRaccoon

RoomRaccoon is an award-winning Hotel Management System trusted by thousands of independent properties across the globe. RoomRaccoon’s cloud-based platform empowers hoteliers with a category-redefining, comprehensive range of products and solutions to increase revenue, streamline operations, and enhance the guest experience. And with over 400 integrations, RoomRaccoon is one of the most connected solutions on the market. Founded in 2017 by a hotel owner and tech entrepreneur, RoomRaccoon was shortlisted as the Best Hotel Management System in 2025 by Hotel Tech Report.

Press release issued by: Lindsay Krause, Senior Brand Manager, RoomRaccoon [email protected]