Finweek English Edition
Can they turn the tide?
City Lodge’s results for the year ending 30 June, released on 10 September, saw occupancy of 19% compared with 55% in 2019, and even the latter was on the low side for the group. The rights issue helped even though much of that money went to bail out the BEE scheme; and the sale of their East African unit will reduce debt further. The big question is how quickly they can get the occupancy to around 40%, which is where they start to make money and the leverage effect will kick in. With business travel being a large part of their pre-pandemic occupancy, they will find it harder going than the more direct leisure hotel groups. The fiscal year ending 2022 should see City Lodge back in profit but it’s going to be slow going and I think we have better reopening trades in this sector.
City Lodge’s results for the year ending 30 June, released on 10 September, 19% saw occupancy of compared with 55% in 2019.