City Lodge refurbishes Gqeberha hotel as tourism prospects grow  

City Lodge Hotels, a JSE-listed South African-based hotel group, is stepping up investment in Gqeberha as it looks to capture more of the city’s tourism trade, refurbishing its four-star Courtyard Hotel in Summerstrand and creating seven permanent jobs. The project comes as unemployment rises sharply in Nelson Mandela Bay, putting added focus on investment that can support local businesses and workers. 

The metro’s unemployment rate reached 33.1% in the second quarter of 2026, up from 29.8% in the previous quarter and 26.4% a year earlier, according to Statistics South Africa. About 183,000 people were unemployed, while employment fell by 49,000 from a year earlier, underscoring the scale of the challenge facing the local economy. 

The picture is tougher across the Eastern Cape, where unemployment climbed to 47.5% from 44.6% in the first quarter and 39.5% a year earlier. The province had 1.219 million unemployed people actively seeking work. The Nelson Mandela Bay Business Chamber said in August that stronger investment, business growth and job creation were needed to reverse the trend. 

Hotel investment gathers pace 

For City Lodge, the Courtyard upgrade is part of a wider push in Gqeberha. Road Lodge and Town Lodge are also scheduled for refurbishment during the group’s 2027 financial year. The Courtyard project, which began in July 2025 and was completed in April 2026, redesigned 91 rooms, the restaurant, conference facilities, lobby and public areas. 

The company sees tourism as a potential source of broader economic activity. Courtyard general manager Erich Oberhauser said the refurbishment created about seven permanent positions and reflected confidence in the local hospitality market. He said tourism businesses could strengthen the destination by working together, adding that job creation remained critical as the metro faced high unemployment. 

Tourism seeks bigger role 

City Lodge general manager Andrea Anderson said the Eastern Cape receives less attention from travelers than established destinations such as the Western Cape and KwaZulu-Natal. She described the province as relatively unspoiled and said stronger promotion by residents, businesses and tourism operators could help put Gqeberha and its surrounding attractions more firmly on travelers’ itineraries. 

Anderson said businesses and community groups were working to improve the beachfront’s appearance, upkeep and safety, but added that Gqeberha’s central business district also needed rehabilitation. Oberhauser said he had seen improvements along the beachfront through cooperation among stakeholders, with hospitality businesses taking practical steps to make the area cleaner and safer. 

Municipal infrastructure problems, including disruptions to water and electricity, have also pushed hotels and beachfront businesses to invest in backup systems. City Lodge had already installed a borehole and water-filtration plant at its City Lodge and Town Lodge properties when concerns about water shortages emerged, and later added another system for Courtyard and Road Lodge. 

Restaurant opens to locals 

City Lodge is also redesigning its food-and-beverage strategy to attract customers beyond hotel guests. The refurbished Courtyard restaurant has been renamed 25° East and is led by sous chef Khanya Mshweshwe. Operations General Manager Trevor Boyd said the group wants each restaurant to have its own identity and feel less intimidating to local diners. 

The name 25° East refers to the restaurant’s longitude, while its compass-inspired logo was developed during discussions about the concept. 

City Lodge, founded in 1985 by Swiss-born entrepreneur Hans Enderle, operates 58 hotels across South Africa, Botswana, Namibia and Mozambique under the Courtyard Hotel, City Lodge Hotel, Town Lodge and Road Lodge brands.