City Lodge Hotels Reports R2 Billion Increase In Revenue, Driving Tourism Growth With Strategic Refurbishments Across South Africa

Published on September 16, 2025

City Lodge Hotels Limited, 1 of nan largest edifice chains successful South Africa, reported a robust yearly study for nan twelvemonth ending connected 30 June 2025 arsenic gross accrued to R2 billion, a 3 percent summation from nan twelvemonth prior. Although it experiences reliable economical times, nan edifice concatenation still stays group connected strategical description done nan finance into its 58 edifice properties. During nan year, City Lodge Hotels has made investments into awesome refurbishments and modernizations that fueled nan summation nan complaint of inflation, improving nan facility’s guests’ amenities successful nan astir important South African and Mozambican hotels.

Continued Investment successful Hotel Upgrades and Guest Experience

City Lodge Hotels is celebrating its 40th twelvemonth by prioritising sustainable maturation and reinvestment into its properties. Over nan past 8 years, 30 percent of nan edifice rooms crossed its portfolio person either been recently constructed aliases refurbished, ensuring that nan marque stays applicable and appealing to modern travellers. In nan twelvemonth nether review, six hotels were renovated and modernised, pinch commercialized areas astatine 2 different locations besides receiving important upgrades. These efforts person straight contributed to a 7 percent summation successful room rates and a continued betterment successful nan wide impermanent experience.

As portion of nan refurbishment strategy, hotels successful Johannesburg, Pretoria, Cape Town, Durban, and Umhlanga Ridge person undergone awesome improvements. Notably, nan City Lodge Hotel Umhlanga Ridge has already shown affirmative results, pinch a important boost successful room rates pursuing nan completion of its modernisation. These changes are group to further heighten nan entreaty of City Lodge Hotels for some business and leisure travellers visiting cardinal South African cities.

Financial Performance: Stability Amidst Economic Pressures

The group’s yearly financial results bespeak a unchangeable capacity successful nan look of economical pressures, pinch gross expanding by 3 percent to R2.0 billion. The group occupancy complaint saw a flimsy diminution of 2 percent points, from 58 percent successful 2024 to 56 percent successful 2025. However, nan mean room complaint accrued by 7 percent , helping to offset little occupancy levels and resulting successful room gross maturation of 2 percent .

The profit for nan twelvemonth roseate by 13 percent , reaching R213 million, while net per stock accrued by 15 percent. Despite challenges for illustration geo-political instability and fluctuations successful investor confidence, City Lodge Hotels has managed to stay debt-free and support beardown financial health.

In addition, nan group’s nutrient and beverage (F&B) section has performed well, pinch revenues up by 8 percent to R393.2 million. The preamble of F&B services successful each brands complete nan past 2 years has proven successful, contributing to nan company’s diversified gross streams.

Strategic Refurbishments and Expansion

City Lodge Hotels has made sizeable investments successful superior expenditure to upgrade its accommodation and support its competitory edge. This year, nan group spent R282.9 cardinal connected refurbishments, a 71 percent summation from nan erstwhile year. These upgrades see important improvements astatine properties for illustration Town Lodge Bellville, Road Lodge N1 City, and Courtyard Hotel Sandton. In summation to refurbishments, nan group has completed 2 caller floors astatine City Lodge Maputo, adding 54 rooms to its inventory, pinch a further 26 rooms group to beryllium completed successful nan first 4th of FY26.

Despite challenges successful obtaining Council approvals and delays successful proviso concatenation deliveries, City Lodge Hotels continues to attraction connected providing nan next-generation edifice experience. The group is besides actively pursuing opportunities for caller edifice developments successful high-growth areas wrong South Africa, further strengthening its position successful nan market.

Economic and Market Challenges: Impact of Geo-Political Uncertainty

While City Lodge Hotels has delivered beardown financial results, nan institution has not been immune to nan wider economical pressures facing nan hospitality industry. The world geo-political instability, peculiarly successful South Africa and surrounding regions, has dampened business and investor confidence, affecting occupancy rates. The challenges posed by waste and acquisition tariffs, reduced NGO funding, and uncertainty successful world relations, peculiarly pinch nan US, person disrupted recreation patterns, peculiarly for world travellers.

Locally, South Africa’s governmental scenery has besides posed challenges, pinch concerns complete nan stableness of nan Government of National Unity (GNU) impacting economical prospects. However, location person been affirmative signs for growth, pinch liking complaint cuts, debased inflation, and a much unchangeable energy proviso helping to support nan economy. City Lodge Hotels is cautiously optimistic astir these affirmative developments, arsenic they could lead to improved business conditions successful nan coming year.

Outlook: A Focus connected Sustainable Growth and Innovation

Looking forward, City Lodge Hotels remains focused connected sustainable maturation and biology responsibility. The group is committed to star powerfulness and h2o sustainability solutions, pinch Phase 3 of star sheet installations already successful progress. These initiatives align pinch nan company’s broader goals of improving biology resilience and reducing operational costs.

In position of occupancy, nan group has reported a affirmative commencement to nan 2026 financial year, pinch a 4 percent summation successful occupancy rates for July and August 2025. Food and beverage revenues person besides shown beardown growth, pinch increases of 16 percent and 14 percent for July and August 2025, respectively.

City Lodge Hotels is besides moving to grow its portfolio pinch further refurbishments, including nan upgrade of 5 further hotels successful 2026. The group’s attraction connected exertion invention will continue, pinch further investments successful integer solutions aimed astatine enhancing nan impermanent experience.

Strengthening City Lodge Hotels for nan Future

City Lodge Hotel displayed their resilience and strategical imagination successful their finances wrong this clip period. It appears their finance successful modernising hotels, enhancing operational ratio and impermanent acquisition does salary off, arsenic it besides allows nan institution to support their position arsenic a leader successful nan hospitality manufacture successful South Africa.

This edifice intelligibly useful connected nan relaxation traveler experience, on with, focusing connected modernising accommodation and enhancing work levels. Therefore, present each guests tin get a operation of beardown modern services, adjuvant cognition and sustainable eco-friendly moving pinch relaxation connected nan goals.