by MTHULISI SIBANDA
JOHANNESBURG – CITY Lodge Hotels has disclosed a positive bank balance of R226 million (US$13,182 million) amid positive trends after the lifting of the National State of Disaster in South Africa.
Restrictions were lifted in April.
The move has facilitated travel with businesses and individuals returning to travelling, meeting and experiencing life while nurturing relationships which had suffered during the prolonged period of lockdown.
City Lodge disclosed the planned capital reinvestment in the portfolio is currently underway with the fit-out and availability of the remaining floors at Courtyard Hotel Waterfall City due for completion in early December 2022.
The refurbishment of City Lodge Hotel V&A Waterfront is scheduled to commence in April 2023.
The Group’s current debt position is R300 million, with access to a further R415 million in debt and overdraft facilities.
Occupancies have been bolstered by the return of international flights to almost pre-COVID levels, corporations returning to offices with an emphasis on building relationships and strategic planning.
Domestic leisure travel continues to flourish, boosted by enhanced food and beverage offering across all brands, which has resulted in an almost 200 percent increase in food and beverage revenue compared to the prior year.
Occupancies for the Group for the financial year to date of 56,5 percent have realised steady month on month improvements, exceeding 2019 levels in certain months.
Monthly occupancies for the Group have grown from 52 percent in July 2022 to 60 percent for November 2022 to date.
City Lodge reported that despite demand being slightly dampened by load shedding, high inflation and interest rates, and their impact on the economy and disposable income, the outlook continues to look positive.
– CAJ News