Budget hotels incrrease services
DESPITE some growth,
demand for lower-end
accommodation in South
Africa is perhaps lagging
behind its international
counterparts.
Reports from the US,
for example, indicate a
significant move by lodging
investors into the selectservice
sector, attracted by
lower operating costs and
higher returns.
Peter Schoeman, sales
and marketing director
for the City Lodge Group,
says the local budget hotel
category has grown a lot,
but possibly not as much as
in other countries. “Of our
group’s 54 hotels in South
Africa, Kenya and Botswana,
12 are Town Lodges and 21
are Road Lodges, showing
our commitment to the
so-called budget end of the
market.”
Peter declined to comment
on budget room returns
compared with mid-market
hotel rooms. “All hotels’
returns are based on
occupancy, room numbers
and rates, so the same
principles apply across the
grades. Returns are also
related to the ownership of
the property on which the
hotel is developed.”
He pointed out that budget
hotels were nowadays
offering an increasing
amount of services.
The Road Lodge brand
now provides wireless
Internet, limited breakfast
facilities, vending machines
and parking, along with
comfortable rooms. “We
believe the standard is high
and have encapsulated
this in our most recent
advertising campaign, which
demonstrates Road Lodge
using its one star for what
counts,” he stated.
Even at low rates, City
Lodge still offers City Saver
specials on Road Lodge and
Town Lodge accommodation,
and these are publisheon the group's website.
