CITY Lodge Hotels’ share rose after it said in a voluntary operational update yesterday that the financial year kicked off with robust occupancies with both corporate and leisure travel having returned to normalised pre-Covid trading levels.
The group achieved 62% occupancies for the three months ended September 30, 2023, compared to 54% in the prior comparable period.
City Lodge’s shares closed 4.01% higher at R4.67 on Thursday on the JSE.
Despite government's austerity measures and the financial pressures on household and business income, occupancies continueD to exceed prior year and 2019 levels.
Group occupancies for October were at 63% and November to date at 61%.
City Lodge launched its refreshed corporate and hotel brands positioning and messaging in September 2023, which includes the new pay-off line: "Life is hard. Check into easy."
The group remained in a net nil debt position, with a positive bank balance of R100 million as at November 22, 2023, and an outstanding loan balance of R70 million.
“The reinvestment in our key hotels and products remains a primary focus to improve our guest experience. Phase 2 of the refurbishment of City Lodge Hotel V&A Waterfront's rooms is scheduled to complete in early December 2023, and phase 3, which includes the restaurant and public areas, is expected to commence in the first quarter of 2024,” it said.
Planned refurbishments at Town Lodge Bellville and City Lodge Hotel Lynnwood were scheduled to commence in the next quarter.
“The outlook continues to look positive as we head into the summer holidays and the new calendar year,” it said.