Wrap Text
Voluntary Operational Update
City Lodge Hotels Limited
(Incorporated in the Republic of South Africa)
(Registration. No. 1986/002864/06)
ISIN Code: ZAE000117792
Share Code: CLH
("City Lodge" or the "Group")
VOLUNTARY OPERATIONAL UPDATE
South Africa's economic and political stability, the general business sentiment and trading
environment have all shown some signs of improvement, which have contributed to stronger trading
volumes since the beginning of the 2026 financial year.
The Group achieved 62.0% occupancy for the four months ended 31 October 2025, 4.6% points ahead
of the 57.4% achieved in the prior comparative period. Group average room rates, off the higher base
in the prior year, have tracked inflation at a 3% increase compared to the prior financial period.
Occupancy for the month up to and including 19 November 2025 is up by 8.0% points to 65.0% (2024:
57.0%), and average rooms rates are up 4.4% for the month. Encouragingly, as we near the G20
summit this upcoming weekend, there has been strong demand for hotel rooms across the country,
with the group occupancy running at 90.7% last night.
Food and beverage revenue growth continues to be a highlight, and has also benefitted from higher
occupancies, achieving a 16% growth in the first four months of the financial year, compared to the
prior period. November food and beverage revenue is up by 32% to date.
Whilst Botswana occupancy demand has slowed down in the last 12 to 18 months due to structural
changes in local government travel policies and weaker demand from the country's diamond
operations, we have started to see some green shoots in October and November. Namibia continues
to experience buoyant demand. In Mozambique, the hotel has had encouraging improvement in
occupancies, with an average increase of just over 50% over the last four and a half months,
notwithstanding the additional 54 rooms added to the hotel inventory, since the prior comparative
period.
The Group is embarking on an intensive technology innovation program, on a phased basis over the
next year or so, to replace our property management system and financial management systems,
which is aimed at delivering an improved guest experience and operational efficiencies. These IT
initiatives will incur new implementation and licensing costs.
The Group strategy to modernise and refurbish high potential hotels is progressing well, with several
projects underway at City Lodge Hotel Johannesburg International Airport – Barbara Road, Courtyard
Hotel Gqeberha, Courtyard Hotel Sandton and the commercial area at Courtyard Hotel Rosebank.
Major refurbishments at City Lodge Hotel, Sandton Morningside and Road Lodge Gqeberha will follow
in Q4 of the current financial year.
Following the success of last year's award-winning summer campaign, 'Save our Stay (SOS)', the
'Summer on your terms' campaign has been launched for the forthcoming festive season. The 'up to
40% off' campaign is receiving positive guest and market response and we are optimistic that the
positive demand realised in recent months will carry through December and the new year.
The Group's strong balance sheet enabled the further repurchase and subsequent cancellation of 36.0
million shares (6.1% of shares in issue at the beginning of the 2026 financial year) at an average price
of R4.00 per share, since the start of the current financial year and for a total consideration of R144.9
million. In addition, the Group paid a final dividend for the year ended 30 June 2025, in October 2025,
of R53.2 million.
An agreement for the disposal of Courtyard Hotel Arcadia has been concluded, with the remaining
condition expected to be fulfilled by the end of the month. The sale and transfer is expected to
complete in Q3 of the current financial year.
The financial information contained in this voluntary operational update has not been reviewed and
reported on by the Group's auditor.
Bryanston
20 November 2025
Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 20-11-2025 02:15:00
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