“At the moment doing the branding exercise and the market surveys has probably cost in the region of about two million rand. In order to roll out the refreshed logos of the group is probably going to cost in the region of about 10 million,” Ross, the CEO of City Lodge, told CNBC Africa on Wednesday.
“We would like to capitalise on that by doing some television ads again, which we haven’t had for a number of years. That will all be a part of refreshing the brand logos.”
[DATA CLH:The City Lodge Group], listed on the Johannesburg Stock Exchange in November 1992, is made up of the City Lodge, Courtyard, Town Lodge and Road Lodge hotels.
The hotel chain, which reported its earnings on Wednesday, saw full year revenue increase by 11 per cent to 975.9 million rand and diluted headline earnings per share up 31 per cent to 578.3 cents.
It also reported that full year earnings were up 31 per cent and it declared a full year dividend of 175 cents.
Ross insisted that if things continue the way they are now, the group will continue to see positive growth.
“We found specifically in June that sales were down however in July, we were back onto the growth path again. There was a slight increase and certainly now the first couple of weeks in August, are showing that we definitely seem to be back.”