That raised the question whether joint venture partners Circlevest Properties and Atterbury Property were perhaps a tad overzealous in selling Jozi's inner city revival story to investors. But any concern that the stylish, Afro-chic hotel would be destined to stand empty was short-lived.

Six weeks later Mapungubwe was fully booked most week nights. Mapungubwe is the first upmarket hotel to open its doors in Jo'burg's inner city after the once-swanky Carlton Hotel was mothballed 10 years ago.

Although there was talk last year that the Sheraton group was interested in restoring the Carlton to its former glory, it later walked away from the proposed deal. Other hotel operators and developers have also shied away from the inner city until now. Gustav Holtzhausen, MD of Circlevest Properties, says the first two weeks of trade were ominously quiet. But as soon as people began to walk through the doors and saw what the project was all about, bookings picked up quickly.

Holtzhausen says the last two weeks of November were so busy that the overall occupancy for the month touched 75%. That will no doubt please investors who have placed their units in the hotel's rental pool.

When Mapungubwe was launched off-plan in October 2005, Circlevest sold all 128 studios, one-bedroom and loft units within three months. Prices ranged between R425 000 and R800 000. The owners of 92 of the self-catering apartments have placed their units in the hotel's rental pool, while the remaining 36 are occupied by full-time residents and don't form part of the hotel offering.

Holtzhausen is confident that management will be able to deliver on its projected income payouts to investors of 7% to 8% (net) in the first year of operation. If Mapungubwe can maintain a 75% occupancy, yields will rise to around 10%/year. Dominic Prendergast, operations director of Mapungubwe operator Faircity Hotels and Apartments, says around 20% of guests are foreigners. Most of the remainder are out-of-town employees or clients of nearby companies, including mining companies and banks.

Prendergast says it makes sense to have an upmarket hotel offering in the financial/mining district, given that the closest comparable options are in Braamfontein: the Protea Parktonian and the Devonshire Hotel.

Although Mapungubwe is the first to re-enter the CBD at the higher end of the market, Prendergast expects other four- and five-star hotels to follow suit. A few more are apparently already on the drawing boards.