Independent hotels across South Africa are kicking off the year with strong performance, according to RoomRaccoon, a leading hotel management software used by properties nationwide.
Analysing the booking data from over 4,500 rooms in hotels, guesthouses, B&Bs, and other independent accommodations, RoomRaccoon reports an 8% year-on-year increase in revenue per available room (RevPAR) for January 2025.
RevPAR rose from R1,477 in January 2024 to R1,593 in January 2025, signalling a robust start to the year.
The growth is largely driven by a significant rise in the average daily rate (ADR), which climbed 16% to R2,864, compared to the previous year.
Notably, the peak ADR hit R3,480 on January 2, 2025, highlighting a surge in high-demand bookings.
RoomRaccoon also observed a trend toward longer stays. While 57% of guests booked single-night stays (down 3% from 2024), there was a notable increase in bookings for longer durations.
The proportion of guests staying for two nights rose to 20%, while 10% booked for three nights (+1%), 5% for four nights (+1%), and 7% for five or more nights (+1%).
This data reflects a positive shift in South Africa’s hospitality sector as independent hotels continue to benefit from rising rates and changing guest preferences.
“We’re seeing the post-pandemic travel boom is beginning to stabilise, with occupancy rates dropping slightly from 60% in January 2024 to 56% in January 2025. However guests are staying longer, which increases the opportunity to generate more revenue from other areas of the property,” said Niels Verspui, market head of RoomRaccoon South Africa.
The group’s cloud-based platform provides hoteliers with a range of products and solutions to increase revenue, streamline operations, and enhance the guest experience.
RoomRaccoon’s data shows that hotels generated an additional R99.5M in January 2025 from add-ons like airport shuttles, guided tours, game drives, and special packages—up from R73.7M in January 2024.
“By selling add-ons through the website booking engine and online check-in, hotels are unlocking new ways to increase earnings beyond room bookings,” said Versprui. “A key hospitality trend we’re seeing in 2025 is that hoteliers are becoming more strategic in monetising all aspects of their property. With RoomRaccoon’s Grey Rooms feature, our users sell alternative spaces like secure parking and extended pool access after check-out as add-ons.”
He said that by tapping into underutilised spaces and services, independent hoteliers can create new income streams while offering guests greater convenience and flexibility during their stay.
