Not only is City Lodge Hotel Group back to profitability after three torrid, pandemic-induced years, the group also declared a small dividend in its latest interim results to end-December 2022.

Normally, this would have resulted in an appreciation in the share price, but such is the structure of City Lodge’s shareholding that a lot of so-called stale bulls see any possible strength in the share price as an excuse to sell. As a result, the share price tumbled more than 10% when the trading update was released a few days before the interim results. City Lodge has undoubtedly been on the right path to recovery for some time and these latest results  endorse that view. But sustained further improvements in earnings and dividends may be required before the stale bulls stop upsetting the market. ..

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