City Lodge Hotels

Operational Update

City Lodge Hotels released a voluntary operational update today which the market took a keen liking to. The share price reached an intraday high of R5.26 shortly after the announcement and closed at R5.11 a share , up 6.24% for the day.

The operational update contained for the following key information:

- Group occupancies have improved due to the return of international flights to pre-covid levels and businesses returning to the office
- Food and beverage revenue was up almost 200% largely due to the enhanced lunch and dinner offerings
- The group achieved occupancies for the financial year to date (July - Nov) of 56.5% and have seen steady month on month improvements
- Occupancies for certain months exceeded 2019 levels
- Occupancies for November 2022 have been 60% thus far and are expected to be even
higher in December
- The group continued to generate positive cash flows and has a cash pile of R226m
- Capital reinvested is currently taking place at the Courtyard Hotel in Waterfall City and a
refurbishment of the City Lodge Hotel V&A Waterfront will take place in Q2 2023
- The current debt position of the group is R300m with access to a further R45m in debt
and overdraft facilities