CITY LODGE HOTELS LIMITED - Voluntary Announcement: City Lodge Hotels To Take Full Ownership Of Its Two Kenyan Hotels

Voluntary Announcement:  City Lodge Hotels To Take Full Ownership Of Its Two Kenyan Hotels

City Lodge Hotels Limited
"City Lodge"
(Reg. No. 1986/002864/06)
(Incorporated in the Republic of South Africa)
Share Code: CLH
ISIN Code: ZAE000117792

Voluntary Announcement:    City Lodge Hotels To Take Full
Ownership Of Its Two Kenyan Hotels

City Lodge Hotels Limited has reached agreement with
Nairobi-based Fairview Hotel Limited to acquire the other
50% of a joint venture between the two companies, giving it
full ownership of the Fairview Hotel and the Country Lodge
in Kenya’s capital city.

Completion of the sale is subject to Kenyan and South
African regulatory approvals, including that of the
Competition Authority of Kenya.

Representing its first expansion foray outside South
Africa, City Lodge acquired 50% of the two hotels in May
2012 and established a joint venture with the hotels’
previous    owners    to   investigate    other    expansion
opportunities in Kenya and elsewhere in East Africa.

The agreement regarding City Lodge’s acquisition of the
other 50% of the joint venture is effective from 31 January
2014.

Commenting   on   the  transaction,   City  Lodge’s  chief
executive, Clifford Ross, said it demonstrates the group’s
confidence in Kenya and East Africa and provides a strong
platform for further growth in the region.

“We have been very pleased with our strategic investment
into the Kenyan hotel market and look forward to building
on this foothold in the East African region,” he said.

“We have learnt a lot about the region over the past couple
of years and are optimistic about development prospects
that we can pursue.”

 Apart from its investment in Kenya, City Lodge also has a
Town Lodge in Gaborone, Botswana, and is examining
expansion opportunities in East Africa, West Africa and
some Southern African Development community countries.
The City Lodge Hotel Group operates 55 hotels offering
6,755 rooms across four brands in South Africa, Kenya and
Botswana.

The transaction is below the transaction thresholds as set
out in the JSE Listings Requirements and is therefore a
voluntary announcement, for information purposes only.

Bryanston
4 February 2014

Sponsor
JP Morgan Equities South Africa (Proprietary) Limited

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