CHRIS GILMOUR: City Lodge recovers its footing
The hotel group is making money again, even before the onset of the inbound holiday season, which bodes well for the group and investors
Like many other companies in the broad hospitality sector here and abroad, City Lodge Hotel Group has been through the mill. But it has survived the onslaught of the coronavirus pandemic and is well on the road to recovery. While not completely out of the woods, occupancy levels at its hotels are just about back to pre-pandemic levels and room rates continue to improve. The most recent results, for the year to end-June 2022, show a profound turnaround; a return to earnings after two years of deep losses can reasonably be expected in financial 2023.
Average occupancy levels for the year were 38% compared with 19% a year earlier. Within SA specifically (excluding the rest of Africas), the average occupancy level was 40% compared with 21% a year earlier. Average room rates have gradually been clawed back during the past year and are approaching those last seen in 2019. While this is most welcome, the harsh reality is that by financial 2023, City Lodge will have had four ...
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