Capital Hotels and IDC Commit R270m to New Gqeberha Hotel and Apartment Development
The Capital Hotels Group and the Industrial Development Corporation (IDC) have announced a R270 million hotel and apartment development in Gqeberha, comprising 145 hotel rooms and apartments situated near the Boardwalk precinct with access to beachfront, casino and shopping facilities. The project - Capital Hotel Group's 12th development in South Africa and the IDC's second funded hospitality venture with the group - has already created more than 200 jobs in the Eastern Cape, a province facing persistently high unemployment. The investment is backed by Gqeberha's growing economic profile, anchored by the Coega Special Economic Zone, the R11 billion BAIC vehicle assembly plant and Aspen Pharmacare's manufacturing operations.
The development comes as South Africa's tourism sector records strong growth, with 10.5 million international arrivals in 2025 - up 17.7% year-on-year - and tourism contributing nearly 9% to national GDP while supporting approximately 1.8 million direct and indirect jobs. IDC head of services Kagisho Bapela described the sector as critical to economic growth and employment creation, noting Gqeberha's potential to emerge as one of South Africa's key coastal economic hubs. The IDC also confirmed that the Club Med SA resort in KwaZulu-Natal, another IDC-backed project, is on track to open in July.
Source: IOL News