CITY Lodge Hotel Group has noted
a decline in occupancy over the
last financial year, while hotels
outside South Africa have shown
encouraging signs of improvement.
In the financial year ended June 30,
2018, the City Lodge Hotel Group
reported a decrease in average
occupancies to 59% from 63% in the
previous financial year. Group revenue
decreased by 1% to R1,5 billion.
The hotel group cited trading
conditions in South Africa, where
it has 54 hotels, as the main
reason for the decrease.
Commenting on the outlook for the
2019 financial year, newly appointed
ceo, Andrew Widegger, said in South
Africa the new financial year had
seen a continuation of the soft trend
experienced in the 2018 financial year.
“It is unlikely that there will be a
meaningful change in sentiment until
after the country has held its general
election, which is likely to take place
in the second quarter of 2019. The
outlook for our hotels located outside
South Africa has shown encouraging
signs of improvement and the group
will benefit from the opening of the new
hotels,” he said.
City Lodge Hotel Group expects to
open new hotels in Dar es Salaam
and Maputo by the end of October as
part of its targeted African expansion
strategy.
City Lodge looks to African expansion to drive revenue
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