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Consolidated Annual Financial Statements and Cash Dividend Declaration for the year ended 30 June 2026
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")
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS AND CASH DIVIDEND DECLARATION
FOR THE YEAR ENDED 30 JUNE 2026
- Revenue R2.2bn (2025: R2.0bn) up by 10%
- Group occupancy 58% (2025: 56%) up by 2% points
- Average room rate increase 7% (2025: 7%) no change
- Adjusted EBITDAR R675m (2025: R589m) up by 15%
- Profit for the year R203m (2025: R213m) down by 5%
- Cash generated by operations R657m (2025: R549m) up by 20%
- Earnings per share (EPS) (diluted) 38.7c (2025: 38.3c) up by 1%
- Headline earnings per share (HEPS) (diluted) 34.4c (2025: 33.1c) up by 4%
- Adjusted headline earnings per share (diluted) 41.6c (2025: 34.6c) up by 20%
- Total dividends declared per share 19c (2025: 15c) up by 27%
- Share buy-back R153m (6.4% of shares in issue)
Commentary
City Lodge Hotels has delivered a good performance. The first half of the year ("H1FY26") achieved
robust occupancy from domestic leisure and business travel.
The impact of the geopolitical conflict in the Middle East was particularly evident in the last quarter
of the financial year as higher fuel costs, inflation and interest rates, curbed discretionary spending,
making domestic travel more expensive. This led to a softening in occupancy in the last quarter,
albeit slightly ahead of the prior year. Weekend stays and leisure breaks were particularly subdued
over this period.
Financial review
After a strong start to the year in which we achieved 62% occupancy in H1FY26, the geopolitical tensions
and fuel price increases in the second half resulted in an overall 58% (2025: 56%) occupancy for the year.
The group effectively managed the impact of the weaker second-half occupancy through disciplined room rate
management. Average room rates increased by 4% in H1FY26, and accelerated to near double-digit growth in
H2FY26, resulting in a full-year increase of 7%, in line with the prior year (2025: 7%).
Total revenue for the year ended 30 June 2026 increased by 10% to R2.2 billion (2025: R2.0 billion) with
rooms revenue increasing by 9% to R1.74 billion (2025: R1.59 billion). The food and beverage (F&B) offer
continues to broaden, as we have added bespoke identity restaurants to three of our hotels. F&B revenue
grew by 14% to R449.9 million (2025: R393.2 million), and now accounts for 20.4% (2025: 19.7%) of total
revenue.
Cost containment remains a key area of focus, as we try to mitigate the above inflation increases in utility
costs. Inflation spiked in the second half of the year following the fuel price increases caused by the
Middle East conflict. Total operating costs increased by 9%, but operating costs per room sold only
increased by 6%.
The combination of strong revenue growth and well-controlled costs, delivered an Adjusted EBITDAR
(which excludes unrealised foreign exchange (losses)/gains and exceptional items) growth of 15%, and an
Adjusted EBITDAR margin increase of 1.1% points to 30.6% (2025: 29.5%).
Diluted earnings per share increased by 1% to 38.7 cents (2025: 38.3 cents). Diluted headline earnings
per share increased by 3.9% to 34.4 cents (2025: 33.1 cents), whilst adjusted diluted headline earnings
per share, which excludes unrealised losses on foreign exchange and exceptional items
(the impairment of the deferred tax assets) has increased by 20% to 41.6 cents (2025: 34.6 cents).
Strategic update
The group continues to optimise its strong balance sheet position, and robust cash generated by operations,
of R656.9 million (2025: R548.6 million), by reinvesting in its hotels. In addition, we acquired and cancelled
38 million shares in issue (6.4% of total shares in issue at the beginning of the financial year) at an average
price of R4.02 per share, for a total consideration of R152.8 million.
Capital has been allocated to strengthen the hotel portfolio and align the product with our new-generation brand
standards delivering more value to our guests. These include the modernisation of three hotels (City Lodge Hotel
(CL)Johannesburg International Airport, Courtyard Hotel (CY) Gqeberha and CY Sandton) and three bespoke restaurant
refurbishments (CL V&A Waterfront, CL Umhlanga Ridge and CY Gqeberha). Two further hotel refurbishments are
in-progress at CL Morningside, Sandton and Road Lodge (RL) Gqeberha. The group spent R234.0 million
(2025: R260.5 million) on capital expenditure during the year.
The group also optimised the performance of the portfolio through the sale of CY Arcadia (closed in December 2025),
and by not renewing the lease for CL Newtown (closed in March 2026). Both hotels were loss making and had been
impaired in previous years.
Outlook
Disciplined refurbishment plans continue to be prioritised at targeted hotels to deliver optimal and sustained
returns.The group intends to complete the current refurbishments at CL Morningside Sandton and RL Gqeberha in
H1FY27, with a further four hotel refurbishments planned to commence during the year. These include CL Fourways,
Town Lodge (TL) Roodepoort, TL Gqeberha and RL Johannesburg International Airport.
The group is actively pursuing expansion opportunities, specifically in areas such as, Western Cape and
KwaZulu-Natal. In addition, the construction of the 53 room expansion at CL Waterfall City is scheduled to
commence in September 2026 and to be completed in June 2027.
Environmental sustainability and resilience solutions continues to be a priority to mitigate the water and
electricity supply challenges and high annual cost increases. Phase 3 of our solar installation roll-out and
the addition of more water resilience and sustainability solutions have been earmarked for financial year 2027.
In response to global uncertainty caused by the Middle East conflict, the group is well-positioned to manage longer-
term disruptions. We are vigilant and responsive to the changes in demand and price pressures. Pressure from low
weekend demand is balanced by good midweek demand and promotions, where appropriate.
Group occupancies for July and August 2026 were 59% and 62%, respectively (July and August 2025: 60% and 59%,
respectively). Month to-date occupancy, up to 9 September 2026, is up by four percentage points to 65% (2025: 61%).
The ARR improvements remain consistent with the second half of the financial year, with year to date up to
9 September 2026 achieving an increase of 10% and total revenue growth of 10.4% compared to the same period
in the prior year.
Declaration of dividend
The board has approved and declared a final dividend (number 70) of 11.00 cents per ordinary share (gross)
(2025: 9.00 cents) in respect of the year ended 30 June 2026.
The dividend will be subject to Dividend Tax. In accordance with paragraphs 7.23 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 11.00 cents per ordinary share for shareholders exempt from the Dividend Tax;
- the net local dividend amount is 8.80 cents per ordinary share for shareholders liable to pay the Dividend Tax;
- the company currently has 549,039,187 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, 29 September 2026
- Shares commence trading ex dividend Wednesday, 30 September 2026
- Record date Friday, 2 October 2026
- Payment of dividend Monday, 5 October 2026
Share certificates may not be dematerialised or rematerialised between Wednesday, 30 September 2026 and
Friday, 2 October 2026, both days inclusive.
Additional information
This short-form announcement is the responsibility of the directors and is only a summary of the information
contained in the consolidated annual financial statements for the year ended 30 June 2026 ("AFS FY2026")
and does not contain full or complete details. The AFS FY2026 has been audited by the external auditor,
PricewaterhouseCoopers Inc. who has expressed an unmodified audit opinion thereon. Financial figures in
this announcement have been correctly extracted from the AFS FY2026. The information in this announcement
has not been audited and reported on by the company's external auditor.
The AFS FY2026 is available on the company's website http://www.citylodgehotels.com.
The AFS FY2026 can also be accessed directly using the following JSE cloud link:
https://senspdf.jse.co.za/documents/2026/jse/isse/CLH/ye2026.pdf
Any investment decisions should be based on the AFS FY2026 published on the link above and on the
company's website.
For and on behalf of the board
Bulelani Ngcuka Andrew Widegger
Chairman Chief executive officer
10 September 2026
DIRECTORS: Bulelani Ngcuka (Chairman), Andrew Widegger (Chief executive officer)*, Frank Kilbourn (Deputy chairman),
Karen Classen, Stephen Enderle#, Deon Huysamer, Dr Sizakele Marutlulle, Mathukana Manthata, 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: 10/09/2026 04:26:00
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