Queensgate Hotel and Leisure is planning to spend around R500m building or buying hotels over the next two years as it looks to cement its position in South Africa’s tourism industry by increasing its presence across the country.

The company said the cash, which is to be funded by both Queensgate and investor partners, would be used on around 20 projects. It is also separately considering two projects in Mauritius.

"We are heavy in Cape Town because it is the tourism capital of South Africa and it is important to have a strong base there," said Hubbard, adding that most of the group’s new projects would be in other parts of the country.

“About four will be in Johannesburg, and one will be directly in the city centre. We are also looking at Durban and other smaller cities where it would make sense for us to have a hotel," added Hubbard.