JOHANNESBURG - Hotel group City Lodge reported a 19.4 percent drop to 613.4 cents in diluted normalised headline earnings per share for the year ended June 30, with average occupancies declining from 59 percent to 55 percent.
Total revenue increased by three percent to R1.5 billion, the company said.
In South Africa, occupancies decreased from 61 percent to 58 percent, in line with a three percentage point decline in the six months to December 31 2018.
"Low levels of business and consumer confidence, high unemployment, uncertainty around (power utility) Eskom’s sustainability and land expropriation, as well as negative growth in the first quarter of 2019, resulted in difficult trading conditions," City Lodge said.
Down by three percentage points at the half year, Botswana occupancies improved slightly in the second half, with the improvement continuing into the current year.