by MTHULISI SIBANDA
JOHANNESBURG, (CAJ News) – CITY Lodge Hotels has more than doubled total revenues to R436 million (US$28,7 million) over the past six months, as occupancy levels increase.
This is in line with eased COVID-19 restrictions.
The South African company saw revenues increase from R215,6 million for the prior period.
The group generated profit from operating activities before interest, tax, depreciation and amortisation (EBITDA) for the six months to December 2021 of R122,6 million compared to an EBITDA loss in the prior period of R131.7 million.
Average group occupancies are up to 30 from the same period in 2021.
Average occupancies (open hotels) is 34 percent, up from 27 percent.
Food and beverage revenue has increased by 128 percent compared to the prior year.
The results include the operational performance of the disposal groups in Kenya and Tanzania.
By the end of January 2022 the transaction received the unconditional approval from the competition commissions.
Due to the delays in the competition commission approvals, the long stop dates have been extended to May 31.
City Lodge has re-opened all its 56 South African hotels, and has six of the seven hotels opened in Rest of Africa.
“We anticipate improved monthly occupancy and pricing recovery during the next two trading quarters,” the group stated.
It looks forward to the anticipated completion of the disposal of its East Africa operations before the end of April.
“The proceeds will be applied to strengthen our financial position and enable us to resume hotel refurbishment plans,” City Lodge stated.
– CAJ News