The City Lodge Hotel Group (CLHG) is JSE-listed and has announced its unaudited interim results for the six months ended 31 December 2020. These reflect the effects of the coronavirus pandemic, including a 73% decrease in revenue (R215,6m, as compared to R809,3m in 2019), a net loss after tax of R550,4 million (compared to a R46,3 million profit in 2019), and a 27% decrease in occupancy of open hotels (which currently sits at 42 hotels in South Africa and 4 in the rest of Africa).
These reflect the effects of the coronavirus pandemic, including a 73% decrease in revenue, a net loss after tax of R550,4 million, and a 27% decrease in occupancy of open hotels.
However, the Group has also been able to share several notable achievements during this period. This includes the opening of Courtyard Hotel Waterfall City this week, which brings the groups portfolio to 63 hotels in six countries, and the revamp of the Courtyard Hotel Rosebank (pictured below). The group is also making ongoing improvements to its health and safety systems, and progress on its sustainability journey which included the introduction of an all new environmentally-friendly amenities range in July 2020.
It has also noted a steady improvement in occupancies since the last quarter of the 2020 financial year, as South Africa’s risk adjusted strategy has allowed for greater travel and traveller confidence. The group will continue to review demand, and based on this, gradually reopen more hotels.
To help CLHG through this challenging the period, R1,2 billion was raised through a fully subscribed rights offer last year. This has been used to repay a portion of amounts owing, improve liquidity and support the working capital requirements of the group during the pandemic.
To help CLHG through this challenging the period, R1,2 billion was raised through a fully subscribed rights offer last year.
The group has also secured access to a R700 million loan facility with the group’s funders, of which R170 million remains undrawn as at the end of December 2020, and secured a waiver of the debt covenants for the June 2021 measurement period.
Additionally, the board is in the advanced stages of negotiating an unsolicited non-binding approach for the proposed acquisition of City Lodge’s East African operations.
Andrew Widegger, CLHG CEO, comments, “While we anticipate a slow recovery of the hospitality sector, we are encouraged that vaccination roll-out programmes across the world are gaining momentum. South Africa has recently begun its vaccination programme. These actions are expected to lead to improved travel confidence and boost the recovery of the sector.”
He adds, “The group has embraced the need to innovate and create a safer, healthier stay for all guests through its industry-leading hygiene and safety protocols, and the introduction of technology enhancements that reduce direct contact and touch, through the development of the web and App-based online check-in, online Covid-19 pre-screening, and QR code menu and service selection. We remain ready to warmly and safely welcome our guests.”