City Lodge Hotel Group has released its financial results for the financial year ending June 30, 2019.
The group said average occupancies across its hotels had fallen from 59% to 55%, due to challenging trading conditions in its markets. South African average occupancies fell from 61% to 58% as a result of low levels of business and consumer confidence, high unemployment, uncertainty around Eskom’s sustainability, and land expropriation, as well as negative economic growth in the first quarter of this year.
Total revenue rose by 3% to R1,5 billion. On a normalised basis, total operating costs increased by 11,4%, but by a lower 7,2% in South Africa, where most of the group’s hotels are situated.
A gross final dividend of 137 cents has been declared, bringing the total dividend for the year to 366 cents, 19,4% lower than in the previous year.
The weaker trend of the past year has extended into the new financial year, says ceo, Andrew Widegger, adding that new catalysts are needed to boost investment confidence and economic growth.
