City Lodge results soar

A 25% rise in nett profit (R70,3m), a 20% increase in operating profit (R103,8m), 13% swell in revenue (to R219,3m) – these were some of the highlights in the City Lodge group’s results for the six months ended December 2005. It attributed these successes largely to buoyant trading conditions stimulated by the strong domestic economy. Average occupancies rose by three percentage points to 80%, the highest level since 1996. The group said the first 30 rooms of the 120-room Town Lodge George had opened and the hotel would be fully operational by early March. Town Lodge Roodepoort, too, is scheduled to open by the fourth quarter of 2006. An agreement has been signed for the purchase of a site in East London on which a 90-roomed Road Lodge will be built. The group continues to seek suitable sites to expand its South Africa footprint. (Jackie Mackenzie)