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 Date: 04/02/2014 12:02:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.