Hospitality group City Lodge is beginning to reap the fruits of the lifting of the national state of disaster eight months ago.
The company said in a trading update on Monday that occupancies at its facilities have been supported by the return of international flights to almost pre-Covid levels.
The group said monthly occupancies have grown from 52% in July 2022 to 60% this month.
“In addition, domestic leisure travel continues to flourish, boosted by our enhanced food and beverage offering across all brands, which has resulted in an almost 200% increase in food and beverage revenue compared to the prior year. Occupancies for the group for the financial year to date of 56.5% have realised steady month-on-month improvements, even exceeding 2019 levels in certain months,” the company said.
“Despite demand being slightly dampened by ongoing loadshedding, high inflation and interest rates, and their impact on the economy and disposable income, the outlook continues to look positive as life returns to normal and businesses and individuals embrace the freedom to take every opportunity to travel.”
With five Courtyard Hotels (480 rooms), 19 City Lodge Hotels (3 281 rooms), 12 Town Lodges (1 507 rooms) and 23 Road Lodges (2 272 rooms), the City Lodge Hotel Group has 7 540 rooms, making it one of the largest hotel chains on the continent.
City Lodge also said it currently has a positive bank balance of R226-million, while its debt levels are at R300-million, with access to a further R415-million in debt and overdraft facilities.
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