CITY Lodge has reported a strong performance across its four brands in the six months to December 2008. Headline earnings and interim dividend increased by 15%.
Revenue rose by 16% to R342m, normalised headline earnings – excluding the effects of a major BEE transaction completed in July 2008 – increased 15% to R123,4m and normalised diluted headline earnings per share increased 15% to 286,7 cents.
Commenting on the group’s expansion, group chairman Hans Enderle, said good progress is being made on the 125-room Road Lodge Umhlanga Ridge, while work has begun on the 303-room City Lodge OR Tambo Airport and the 211-room City Lodge Fourways, both of which are scheduled to open in the second quarter of 2010.
Regulatory approvals are being awaited before construction can begin on the 90-room Road Lodge Port Elizabeth Airport, the 66-room Road Lodge Bloemfontein Airport and the 118-room Road Lodge Southgate.
Agreements in respect of the 182-room City lodge Hatfield and the 211-room City Lodge Lynnwood are expected to be concluded shortly and it is anticipated that construction of all five of these hotels will commence before the end of the current financial year with completion towards the middle of 2010.
In addition, a site has been acquired adjacent to the existing Town Lodge Grayston Drive in Sandton with a view to extending this hotel by 70 rooms.
