City Lodge Hotels saw strong growth in 2025 with an increase in government spend. However, consumer and business spending remained constrained.
Reporting on the 2025 half-year results to December 31, 2025, CEO Andrew Widegger said: “While consumer and business spending remains constrained, there is positive sentiment in the South African economy, aided by the hosting of the B20 and G20 summits last year, which helped deliver promising GDP growth. As the Government of National Unity moves forward with its agenda, there has been an increase in government spending.”
All regions in South Africa benefited from growth in occupancy demand with Gauteng, KwaZulu-Natal and the Eastern Cape leading regionally.
Mozambique and Namibia beat expectations as the hotels achieved growth in room and food and beverage sales. Botswana showed some signs of recovery with growth in the local economy expected to boost government and corporate demand in future.
Hotel upgrades and closures
The group completed five refurbishment projects including bedroom upgrades at City Lodge Hotel Johannesburg Airport, Courtyard Hotel Gqeberha and Courtyard Hotel Sandton. The refurbished restaurants and commercial areas at City Lodge Hotel Umhlanga Ridge and City Lodge Hotel V&A Waterfront now include new in-house dining facilities.
Courtyard Hotel Arcadia permanently closed in December 2025 following plans to sell it for R37,3 million. Transfer of the property was completed on February 13. The City Lodge Hotel Newtown lease will expire in May. City Lodge decided not to renew the lease, and the hotel will close on March 31.
The group has signed a lease addendum to expand City Lodge Hotel Waterfall City by a further 55 rooms with construction set to begin in April/May and be completed by March 2027.
Half-year results
During the period, City Lodge Hotels delivered revenue of R1,14 billion – up by 12% compared to the previous half-year results. Group occupancy reached 61,6% (an increase of 4,2 percentage points) while the average room rate was up by 4%.
