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Built for more than $100-million by South African property magnate Sol Kerzner, the 131-room One&Only resort sits at the posh Victoria and Alfred Waterfront in the centre of the city, with views of the landmark Table Mountain.
The biggest rooms go for $4000 a night, a bargain compared to the $40 000 rooms at Kerzner's newly-opened Atlantis resort in Dubai.
A penthouse on top of the hotel sold last year for R110-million, making it the most expensive property in Africa.
Only 350 people were invited to an intimate cocktail party opening on Thursday evening, where guests including Morgan Freeman, Thandi Newton and Sharon Stone were serenaded by jazz legend Hugh Masekela.
The hotel claims the world's largest collection of South African wine, and features restaurants by chef Gordon Ramsay as well as Japan's Nobu Matsuhisa.
AFP