City Lodge finished the financial year ended June 30 with a nett profit of R188,7 million. Revenue increased by 13% up to R1,9 billion compared with 2023’s R1,7 billion.
The group said City Lodge Hotels was well positioned, with no outstanding debt and group occupancies up 58%, increasing by two percentage points compared with 2023.
Revenue was driven by food and beverage, which increased 22% in the year and now accounts for 19% of the group’s total revenue, reflecting the enhanced food and beverage offering that has been introduced across all brands this financial year.
The group said growth had differed by region, with the Western Cape experiencing the fastest recovery in both occupancy and rates. The greater Johannesburg area has seen only a slight recovery in demand.
“In contrast, however, leisure demand in KwaZulu-Natal has suffered in the year due to socio-economic challenges, including the sporadic closure of beaches, departure of many Durban beachfront businesses and safety and security concerns.”
The group said it had embarked on a capital expenditure programme, including a phased refurbishment of rooms at City Lodge OR Tambo and the City Lodge V&A Waterfront, the installation of additional solar installations and the completion of refurbishment projects at City Lodge Hotel Lynnwood, Town Lodge Bellville, Road Lodge Durban, Road Lodge N1, City Lodge Hotel Umhlanga Ridge and Town Lodge George.
The City Lodge Group said it was pursuing selected growth opportunities for new hotels in South Africa.
