City Lodge sees an increase in occupancy - CNBC Africa

City Lodge sees an increase in occupancy


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City Lodge Hotels report an increase in occupancy. PHOTO: pixelpusher

Revenue for the period was 583.2 million rand.

The increase in revenue was attributed to higher occupancies and a below inflation increase in achieved room rates.

“Average occupancies at the group’s South African hotels rose to 68 per cent in the six months to 31 December 2014, an increase of 4 percentage points from the 64 per cent achieved in the previous interim reporting period,” said [DATA CLH:City Lodge Hotels].

(READ MORE: City Lodge acquires full ownership of Kenyan hotels)

The company’s total revenue, including its Kenyan operations, increased by 20.3 per cent to 642.4 million rand.

“Kenyan occupancies were lower than in the previous year as a result of the perceived Ebola threat and numerous foreign travel advisories in relation to the terror threat in the region.”

Profit before tax, at City Lodge Hotels, on a normalised basis rose by 14 per cent to 226.3 million rand. Normalised headline earnings also increased by 14 per cent to 165.2 million rand.

(READ MORE: City Lodge focusing on brand revamp)

Looking ahead the company expects occupancies to be at a higher rate than previous years due to the gradual GDP growth and the limited supply of new hotel capacity.

The company also reported that Nigel Matthews retired from the board effective 31 December 2014, after 25 years of service.

Deon Huysamer has been appointed as an independent non-executive director, effective 1 January.