City Lodge Hotels in South Africa share interim results
City Lodge Hotels announced on 19 February 2026 its interim results for the six months to 31 December 2025, reporting revenue up 12% to R1.14bn as group occupancy rose 4.2 percentage points to 61.6%. Adjusted EBITDAR increased 16% to R371m with a 32.5% margin, adjusted headline earnings rose 27% to R139m, and cash generated by operations grew 39% to R347m. The group declared an 8c interim dividend – up 33% – and repurchased 6% of issued shares for R144.9m. Average room rate advanced 4%, rooms revenue grew 10% to R898.5m, and food and beverage revenue increased 17% to R233.9m.
Management cited improved South African economic conditions – including FATF grey list removal, a credit upgrade, easing inflation and lower interest rates – alongside B20 and G20 tailwinds. All SA regions recorded occupancy gains, with Gauteng, KwaZulu-Natal and Eastern Cape leading, while Mozambique and Namibia outperformed and Botswana showed early recovery. A stronger rand drove an unrealised FX loss of R24.7m and a higher effective tax rate of 33%, contributing to a 5% drop in profit after tax to R114.6m; diluted EPS was broadly flat at 21.5c, while diluted adjusted HEPS rose 33% to 26.1c. The group completed five refurbishments, closed Courtyard Hotel Arcadia and plans to close City Lodge Hotel Newtown on 31 March 2026 and will add 55 rooms at City Lodge Hotel Waterfall City by March 2027. January and February 2026 started softer on occupancy, but total revenue was up 4–5% on stronger rates and F&B, with momentum expected to improve through the financial year.
Source: City Lodge Hotels
