CHRIS GILMOUR: More attention should be paid to City Lodge’s net asset value and replacement costs
City Lodge is clawing its way back to break-even occupancy, which — barring any returns to stricter lockdowns — should be reached by May or June
In common with most other global hotel chains, City Lodge's earnings have been obliterated as a result of restrictions imposed to deal with the coronavirus pandemic. Although there were nascent signs of improvement during the latter stages of 2020, the optimism was dashed with fresh restrictions in December — such as bans on beaches and alcohol — as the second wave of the pandemic took hold.
Global hospitality sector recovery will be slow, with marked differences between leisure and business travel. But, barring any further unforeseen events, such as widespread prevalence of new variants that prove resistant to vaccines, the bottom has probably been reached in the hotel industry. ..