City Lodge finished the financial year ended June 30 with a nett profit of R188,7 million. Revenue increased by 13% up to R1,9 billion compared with 2023s R1,7 billion.
The group said City Lodge Hotels was well positioned, with no outstanding debt and group occupancies up 58%, increasing by two percentage points compared with 2023.
Revenue was driven by food and beverage, which increased 22% in the year and now accounts for 19% of the groups total revenue, reflecting the enhanced food and beverage offering that has been introduced across all brands this financial year.
The group said growth had differed by region, with the Western Cape experiencing the fastest recovery in both occupancy and rates. The greater Johannesburg area has seen only a slight recovery in demand.
In contrast, however, leisure demand in KwaZulu-Natal has suffered in the year due to socio-economic challenges, including the sporadic closure of beaches, departure of many Durban beachfront businesses and safety and security concerns.
