by TINTSWALO BALOYI JOHANNESBURG, (CAJ News) CITY Lodge Hotels have reported revenues of R1,7 billion (US$90 million) for the past year as its recovery from the COVID-19 and resultant lockdowns gain momentum.The financial results are for the year ended June 30.Group occupancies are up 18 percentage points to 56 percent from the prior year of 38 percent, and 1,5 percentage points up from 55 percent for the 2019 financial year.
Occupancies have been on a rising trend, with monthly occupancies since October 2022 exceeding those of 2019 (excluding January 2023).Similarly, average room rates for the year have increased meaningfully by 12 percent compared to last year, and City Lodge has been recovering lost ground against pre-COVID room rates.
"We are now seeing our recovery playing out," the Johannesburg Stock Exchange-listed entity stated.City Lodge nonetheless remains cautious about the economic challenges, particularly in South Africa, with the ongoing electricity and water supply constraints and the high inflation and interest rates over the last 12 months.
However, the group also recognises the much improved liquidity position and the promising outlook, and is confident that it is able to withstand these headwinds.The board has declared a final cash dividend of 8 cents per share, up from naught in 2022.The 2024 financial year will see the company refurbish ten hotels and roll out new generation hotel room designs to make the products more appealing to the company's changing guest profile and deliver an enhanced return for shareholders.
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Source: CAJ News Agency