CITY Lodge Hotels has
reported increased
revenue on the back
of slightly higher rates,
increased occupancies
and contained costs
but has been affected
by muted consumer
condence.
Revenue for the six
months to December 31
increased 9% to R533,9
million. The group’s
occupancies rose
slightly to 64%, from
63%. Operating costs
showed a 5,7% increase
per room sold, resulting
in normalised EBITDA
increasing by 9% to
R225,3 million.
The group reported
mixed trading conditions
for the period. The
Road Lodge brand was
particularly affected by
pressure on consumers
and small businesses
but continued to achieve
the highest overall
occupancies of the group’s
four brands. Group ce,
Clifford Ross, said trading
was expected to remain
mixed in the second half
of the nancial year, with
business condence likely
to be subdued in the leadup
to the general election
in May. “Beyond that, we
believe that occupancies
will continue to improve
due to the lack of new
accommodation capacity
coming on stream and
improved demand.”
The Courtyard Joint
Venture continued with its
performance improvement,
doubling its prot to
R1,8 million from
R909 000 in the previous
interim period.
According to the group,
negotiations are continuing
to nalise agreements
in Kenya, Ghana and
Tanzania. The group also
continues to investigate
opportunities in East
Africa and the SADC.
