Radisson Hotel Group, one of the world’s largest hospitality groups with 10 distinct brands and more than 1 500 hotels in 100 countries, sees KwaZulu-Natal (KZN) as the next growth node for serviced apartments, one of the fastest-growing segments of South Africa’s hospitality market.
This explains its decision to throw its weight behind the R750 million Radisson Serviced Apartments Umhlanga development near the Gateway Theatre of Shopping.
This follows a wave of announcements that suggest KZN is fast becoming a new hub for the hospitality sector in South Africa, with Club Med, Southern Sun, Radisson Blu and Italian designer Tonino Lamborghini in partnership with Zimbali Lakes Resort all announcing major new developments in the area.
The Radisson Serviced Apartments, comprising 183 units, is the next major development attached to the iconic Radisson name.
It is an investment opportunity with an expected average yield of 12.7% by year five.
The unit prices start at R1.75 million for a 29m² studio apartment, and R2.41 million for 39m² one-bed units with an open-plan lounge, dining and kitchen area.
These are sectional title units which attract no transfer duty on acquisition.
Of the 183 serviced apartments in the new Radisson-branded development, 40 will be offered for sale in Phase 1, with the launch date to the public set for 15 August 2026. The development is scheduled to open in 2029.
Andrew McLachlan, founder of Develop Hotels Inc, has been appointed by Avoca as hotel development advisor for the project. As the founder of an owner-side hotel development management company, he brings more than 35 years of hospitality experience, including senior leadership roles with Radisson Hotel Group and responsibility for hotel development projects across more than 40 countries.
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“The serviced apartment sector has become one of the fastest-growing segments in global hospitality, consistently outperforming many traditional accommodation categories,” says McLachlan.
“Its broad appeal allows it to attract a wider range of travellers than a conventional hotel, from extended-stay corporate guests and relocating professionals to families, leisure travellers and the growing community of digital nomads.
“By combining the comfort, space and convenience of a home with the services and amenities of a hotel, serviced apartments are well suited to today’s flexible travel patterns, where business and leisure increasingly overlap.”
Chris Horn, director of Avoca Developments, the developer behind the project, explains their decision to partner with Radisson.
“We’re the developer, and this is familiar territory for us. Our last development was 230 residential units so we have a good sense of the market appetite in KZN and this development – in partnership with a great brand like Radisson – could not be better timed.
“We’ve seen the demand for serviced apartments in Cape Town and the Western Cape, and it’s been huge. The advantage that KZN has is prices are lower and the market is still relatively under-developed.”
Read: Why Radisson is betting big on Umhlanga
For investors, Umhlanga has something unique, says McLachlan.
Most South African hospitality markets are heavily dependent on Monday-to-Thursday corporate demand, with occupancy typically softening over weekends, public holidays and school holiday periods.
Umhlanga is different. It enjoys strong corporate demand during the week, complemented by robust leisure demand over weekends, school holidays and long weekends.
This creates a well-balanced, year-round trading profile that supports consistently higher occupancy, reduces seasonality and delivers more stable operating performance and investment returns.
“This is the epitome of a lifestyle investment where your apartment is taken care of by the Radisson Group and you get the added benefit of utilising a unit of the same size and standard for any 30 days in a year, while the other 11 months are rented out,” says Horn.
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The apartments come with all the benefits of a hotel including concierge services, cleaning, restaurants, rooftop bar, conference and meeting rooms, all operated to the high standards of the Radisson brand.
McLachlan notes that Radisson Hotel Group is known for maintaining the highest standards and only lends its name to developments that meet its stringent location, operational, design and service requirements.
The serviced apartments form part of a mixed-use development that will include penthouses, to be released at a later stage. The site is located 10 minutes from King Shaka International Airport and five minutes from the beach in the heart of Umhlanga, close to the Gateway Theatre of Shopping.
Owners automatically qualify for Radisson Rewards Gold status, giving them access to preferential member rates, exclusive travel benefits, enhanced rewards and recognition, and a range of privileges across Radisson Hotel Group’s 10 distinctive brands and portfolio of more than 1 500 hotels in over 100 countries.
Gold members also enjoy additional benefits, including room upgrades where available and dining discounts at participating hotels.
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The development reflects a global trend towards hotel-branded serviced apartments, which combine the convenience of hotel services with the flexibility of self-catering accommodation.
For KwaZulu-Natal, it strengthens Umhlanga’s position as a premier mixed-use precinct with walkability to shopping, restaurants, beaches and business hubs.
Radisson Serviced Apartments Umhlanga is scheduled to open in 2029. Investors can register interest at www.radissonapartments.co.za ahead of the public launch on 15 August 2026.
Brought to you by Avoca Developments.
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