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Interim financial results and cash dividend declaration for the six months ended 31 December 2025
City Lodge Hotels Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1986/002864/06)
ISIN: ZAE000117792
Share code: CLH
("City Lodge Hotels" or the "company" or the "group")
Condensed Unaudited Consolidated Interim Financial Results and Cash Dividend
Declaration for the six months ended 31 December 2025
- Revenue R1.14bn (HY2025: R1.02bn) up by 12%
- Group occupancy 61.6% (HY2025: 57.4%) up by 4.2% points
- Adjusted EBITDAR R371m (HY2025: R319m) up by 16%
- Adjusted EBITDAR margin 32.5% (HY2025: 31.2%) up by 1.3% points
- Earnings per share (EPS) (diluted) 21.5c (HY2025: 21.6c) down by 0.5%
- Headline earnings per share (HEPS) (diluted) 21.5c (HY2025: 21.6c) down by 0.5%
- Adjusted headline earnings per share (diluted) 26.1c (HY2025: 19.6c) up by 33%
- Cash generated by operations R347m (HY2025: R250m) up by 39%
- Dividends declared per share 8c (HY2025: 6c) up by 33%
Commentary
Whilst consumer and business spending remains constrained, there are distinct green
shoots and positive sentiment in the South African economy, aided by the hosting of
the B20 and G20 summits last year, which has helped deliver promising GDP growth.
As the Government of National Unity (GNU) moves forward with its agenda, there has
been an increase in government spending.
South Africa's removal from the Financial Action Task Force grey list in October 2025,
S&P credit rating upgrade, downward revisions to inflation targets, and decreases in
interest rates have attracted renewed investor interest. City Lodge Hotels has benefitted
from the renewed government mobilisation and increased business activity.
Financial review
Hospitality is an early beneficiary of positive investment activity and the renewed
economic activity across the country over the last six months, has delivered the highest
occupancy since pre-Covid-19, at 61.6%, which is 4.2% points ahead of the prior period.
City Lodge Hotels yield management initiatives continue to optimise average room rate
(ARR) growth which grew by 4% on the prior period. This improvement resulted in an
overall 12% increase in total revenue for the six months ended 31 December 2025 to
R1.14 billion (six months ended 31 December 2024 (HY2025: R1.02 billion). Rooms
revenue was up by 10% to R898.5 million (HY2025: R815.0 million).
Food and beverage (F&B) revenue has leveraged the additional occupancy, the newly
refreshed restaurants and fresh bespoke menus to deliver a 17% increase to
R233.9 million (HY2025: R200.2 million), and now accounts for 20.5% (HY2025: 19.6%)
of total revenue.
We prioritised cost containment which resulted in a 9% increase in total operating
costs, despite the higher occupancies. Operating cost per room sold increased by
only 3%.
The combination of strong revenue growth and well controlled costs, delivered an
Adjusted EBITDAR, which excludes unrealised foreign currency (losses)/gains, growth
of 16.3%, and an Adjusted EBITDAR margin growth of 1.3% points to 32.5% (HY2025: 31.2%).
The strengthening of the South African Rand against other currencies, resulted in
an unrealised loss on foreign exchange of R24.7 million (HY2025: gain of R10.9 million)
mainly in Mozambique on the intercompany Rand denominated loan.
Profit after tax decreased by 5% to R114.6 million (HY2025: R120.4 million), whilst
diluted earnings and diluted headline earnings per share decreased by only 0.5% to
21.5 cents (HY2025: 21.6 cents), due to the reduced number of shares in issue
following the share buy-backs during the period.
However, adjusted headline earnings for the period, which excludes unrealised foreign
currency (losses)/gains, is up by 27% to R139.3 million (HY2025: R109.5 million), and
diluted adjusted headline earnings per share has increased by 33.2% to 26.1 cents
(HY2025: 19.6 cents).
Strategic update
We repurchased and cancelled 36 million (6%) shares at an average price of R4.00 per share
and a total consideration of R144.9 million.
Good trading performance resulted in a 39% increase in cash generated by operations
of R347.3 million (HY2025: R250.5 million), which has continued to fund the reinvestment
in our cash generating assets through the extensive refurbishment programme at key hotels,
and continued water and electricity resilience and sustainability initiatives.
The group completed five refurbishment projects during the period under review which
included bedroom refurbishments at City Lodge Hotel Johannesburg International Airport,
Courtyard Hotel Gqeberha and Courtyard Hotel Sandton. The restaurants and commercial
areas at City Lodge Hotel Umhlanga Ridge and City Lodge Hotel V&A Waterfront were
completed and newly branded in-house dining offers, which are bespoke to each hotel,
were launched.
We are also optimising our hotel portfolio with Courtyard Hotel Arcadia permanently
closed in December 2025 as the hotel was in the process of being sold for a gross
consideration of R37.3 million. Transfer of the property completed on 13 February 2026.
In addition, the City Lodge Hotel Newtown lease will be expiring in May 2026, and the
group has opted not to renew the lease. The hotel is scheduled to close on 31 March 2026.
Both hotels had been loss making.
Outlook
The SA economy has gained momentum over the last six months, and is widely expected to
continue to improve over the next 12 months.
Whilst January 2026 occupancy demand had a slow start and was down by 2% points to 42%
(January 2025: 44%), total revenue was up by 4% compared to the comparative period,
supported by strong ARR and F&B revenue growth of 9%.Similarly, February 2026 started
slowly but has gained momentum over the last two weeks. February to date occupancy is
4% points down to 56% (February 2025 to date 60%). However, total revenue is up by 5%,
due to improved ARR and F&B revenue growth of 11%. We expect the positive momentum over
the last two weeks to continue over the balance of the financial year.
The group has signed a lease addendum to expand City Lodge Hotel Waterfall City by a
further 55 rooms, with construction due to commence in April/May 2026 and to be completed
by March 2027. The capital cost attributable to City Lodge Hotels will be around R21 million.
The group continues to seek and actively pursue selected opportunities for new hotels in
high growth areas within South Africa.
Declaration of dividend
The board has approved and declared an interim dividend (number 69) of
8.00 cents per ordinary share (gross) (HY2025: 6.00 cents) in respect of the
six months ended 31 December 2025.
The dividend will be subject to Dividend Tax. In accordance with paragraphs 7.23(a) to
(k) of the JSE Listings Requirements the following additional information is disclosed:
- the dividend has been declared out of distributable reserves;
- the local Dividend Tax rate is 20% (twenty per centum);
- the gross local dividend amount is 8.00 cents per ordinary share for shareholders
exempt from the Dividend Tax;
- the net local dividend amount is 6.40 cents per ordinary share for shareholders
liable to pay the Dividend Tax;
- the company currently has 554,472,062 ordinary shares in issue; and
- the company's income tax reference number is 9041001711.
Shareholders are advised of the following dates:
- Last date to trade cum dividend Tuesday, 10 March 2026
- Shares commence trading ex dividend Wednesday, 11 March 2026
- Record date Friday, 13 March 2026
- Payment of dividend Monday, 16 March 2026
Share certificates may not be dematerialised or rematerialised between Wednesday,
11 March 2026 and Friday, 13 March 2026, both days inclusive.
Additional information
This short-form announcement is the responsibility of the directors and is only a summary
of the information in the full announcement and does not contain full or complete details.
The full announcement is available on the company's website http://www.citylodgehotels.com.
The full announcement can also be accessed directly using the following JSE cloud link:
https://senspdf.jse.co.za/documents/2026/jse/isse/CLH/ie2026.pdf
Any investment decisions should be based on the full announcement published on the SENS
link above and on the company's website.
For and on behalf of the board
Bulelani Ngcuka Andrew Widegger
Chairman Chief executive officer
19 February 2026
DIRECTORS: Bulelani Ngcuka (Chairman), Andrew Widegger (Chief executive officer)*,
Frank Kilbourn (Deputy chairman), Karen Classen, Stephen Enderle#, Deon Huysamer,
Sizakele Marutlulle, Mathukana Mokoka, Dhanisha Nathoo*, Lindiwe Siddo*
*Executive #South African and Swiss
REGISTERED OFFICE: The Lodge, Bryanston Gate Office Park, Corner Homestead Avenue
and Main Road, Bryanston, Johannesburg, 2191
TRANSFER SECRETARIES: Computershare Investor Services Proprietary Limited, Rosebank Towers,
15 Biermann Avenue, Rosebank, 2196
COMPANY SECRETARY: Melanie van Heerden
SPONSOR: Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 19-02-2026 02:40:00
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