Inside Cape Town’s aparthotel surge: The future of business accommodation

Source: Supplied.

What is an aparthotel and is it only geared towards tourists?

The main buyers are investors. All purchasers have bought for investment purposes. These buyers are essentially looking for a solid return on investment, both through income yields and capital gains. The main occupants—those who will actually stay as guests—are a mix of small business owners and corporate travellers. We then manage these apartments on their behalf.

How would you describe the rise of aparthotels in Cape Town? What factors do you think are driving this trend?

While there has been an increase in apartment hotels entering the market, our product stands out for two key reasons. Firstly, there hasn’t been another apartment hotel launched in the Gardens area specifically. Most new developments have been concentrated in the CBD or along the Atlantic Seaboard. This makes our location unique, and there isn’t an oversupply in this area.

BlackBrick is part of a recognised network and brand. We have a loyal following, along with an existing guest and member database that actively uses our offerings in other cities. This positions us to attract repeat customers who already know and trust our brand, rather than solely relying on the generic market.

Source: Supplied. Jonathan Liebmann, co-founder of BlackBrick.

How do regulations and zoning laws impact the aparthotel industry in Cape Town, and how does this compare to international markets?

The City of Cape Town is a very forward thinking city management and are pro tourism, so they are very supportive in us expanding our model in the city and this is our second hotel in Cape Town. We are looking to do at least five around Cape Town and are keen on sites in Sea Point, Stellenbosch and Claremont areas.

Have you observed a shift in consumer preferences toward aparthotels over traditional hotels or Airbnb-style rentals in SA?

A lot of guests are now looking to combine business and leisure into staying for longer. So having an aparthotel facilitates that because having a kitchen in the room allows you not to eat at restaurants all the time and the rooms are much bigger than a typical hotel room. That’s the advantage compared to a traditional hotel room.

It's much better than an AirBnB, which is not a hotel, or a random apartment in a residential building as our apart-hotels are properly serviced and all operate in line with a brand standard.

Could you tell me a little bit about Blackbrick?

BlackBrick is Africa’s fastest-growing apartment hotel network, offering innovative and flexible living solutions that seamlessly connect work, travel, and lifestyle across a national platform.

The brand was founded in 2019 by myself and co-developer, Moritz Wellensiek and has since achieved R1bn in sales. Since then BlackBrick has quickly expanded, with successful developments in Johannesburg and Cape Town, and a new landmark project is underway in Umhlanga.

BlackBrick empowers a community of global citizens to live and work freely between cities. We fully manage the aparthotels on behalf of investors, offering hands-free returns, while guests enjoy access to a growing network of vibrant urban villages tailored for modern, flexible living.

How will it impact growth in the Gardens area and surrounds?

The Roodehek Street transformation is a project driven primarily (for now) by three developers, BlackBrick, as well as two other neighbouring developers, where between ourselves we've got seven different buildings on the street, which makes up quite a big percentage of the street. We're all converting our buildings or building new buildings on the site for various uses - from hotels, apartments, office spaces, co-working spaces and retail shops on the street level.

Source: Supplied.

Did Maboneng Precinct's success and vision inspire your drive for BlackBrick's development?

Maboneng is obviously a big part of my career, I learnt a lot there about what works and does not, so lots of great lessons. All the businesses from my past will contribute to my future developments.

Would you like to speak to any further up and coming aparthotel developments you may be envisioning? Do you have your eye on developing internationally?

We’re always looking ahead to expand the BlackBrick network and continue innovating the aparthotel experience. The focus remains on creating flexible, sustainable spaces that add value for both our investors and members. I’m particularly passionate about how we can use this model to connect cities and offer people the freedom to live and work across multiple locations both locally and on a global scale.

How does the aparthotel sector in Cape Town compare to other major global markets, such as Europe, North America, or Asia?

It is still relatively new here. It started accelerating properly in the last three years, but it's growing really fast, I think the product here is very comparable to some of the best products internationally, so very high quality in Cape Town and that’s because it's catering to a very big digital nomad community. Cape Town is one of the top nomad cities in the world; it's got the demand to support high quality supply.

Do you think the trend of aparthotels in Cape Town will continue to grow, plateau, or face challenges in the coming years?