by MTHULISI SIBANDA
JOHANNESBURG, (CAJ News) – CITY Lodge Hotels has reported a 117-percent increase in revenue, to over R1,1 billion, over the past year.
The breakthrough, reported in the company’s provisional results for the year ended June 30 2022, came as occupancy levels trailed eased lockdown levels and a steady recovery to almost pre COVID-19 occupancies.
Revenues were up from R508 million in 2021.
This performance included the 150-percent increase in food and beverage revenue.
The company described the financial year as “a tale of two halves.”
It started the financial year in lockdown Level 4 and in the mid of devastating riots in South Africa.
City Lodge described this as a stark reminder of how the last few years of state capture and the fresh struggles of the pandemic had affected livelihoods and the economy.
“The last two years of strategic innovation has enabled us to capitalise on the changing travel trends and needs of the post COVID traveller,” the company stated.
The group generated earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs (EBITDAR) for the year of R303,2 million (2021: loss of R136,7 million).
The improved performance following the easing of lockdown restrictions resulted in a profit after tax for the year of R81,7 million (2021: net loss of R804,6 million), and earnings per share of 14,3 cents (2021: loss per share 160,6).
After several years of operating in East Africa, City Lodge completed the sale of three hotels in Nairobi (Kenya) and one in Dar es Salaam (Tanzania).
It now has 7 534 (2021: 8 070) rooms across 59 (2021: 63) hotels in four southern African countries.
The company stated there were still many challenges ahead, from the state of the South African economy economy, to load shedding, petrol price increases, global inflation trends supply constraints and geo-political tensions.
– CAJ News