DURBAN – In a move to demonstrate diversification growth within the hospitality sector in South Africa, First Group has launched a new short-term rental management business under the brand First Private Stays (FPS).
Drawing on over 30 years of experience in hotel and resort operations, the Durban-based group has stepped into the increasingly popular world of holiday home rentals, bringing a full-service approach to a market dominated by owner-controlled lists.
With a national footprint of 40 resorts, a real estate portfolio worth R5 billion and a guest base of over 10 million a year, the first group enters the space with a substantial infrastructure.
Its first loyalty program boasts a centralized team of over 100,000 members and over 80 booking specialists, further strengthening its ability to expand its first private stay across the country.
According to Shaun Lamont, managing director of First Group Hotels and Resorts, the launch of First Private Stays is a natural extension of the company's capabilities and both a response to changes in travel behavior.
“Travel preferences have evolved. Today's holiday makers want flexibility and reliability, but they also need a guarantee,” Lamont said.
“With FPS, we offer a standardized experience managed in unpredictable spaces.”
Unlike platforms like Airbnb and Booking.com, First Private Stays does not act as a booking site, but rather works with them and manages your lists on over 200 platforms, including the Global Booking Giants.
The purpose is to help private property owners maximize revenue from holiday homes and provide guests with a consistent hotel-grade experience.
Lamont adds that the first private stay includes:
Detailed inspection and optimization after property setup and optimization across multiple platforms, including 24/7 guest support including add-ons such as Airbnb and Booking.com, including cleaning, babysitting, and concierge-style services.
He also notes the potential for job creation through this new sector of First Group business, particularly in the region.
This model relies on local teams and hosts to provide new employment opportunities for guest services, operations and asset management.
South Africa's short-term rental market continues to grow, due to a surge in domestic travel and remote work trends.
Analysts suggest that professionally managed, private stays can be a favorable choice for both owners and guests seeking quality assurance without sacrificing their uniqueness.
It remains to be seen whether the first private stay will be able to carve out meaningful niches in spaces dominated by tech giants and independent hosts, but brands enter the market with clear advantages as they clearly focus on supporting and serving established hospitality groups.