City Lodge Hotels (CLH) H2 2024 earnings summary

Executive summary

• Revenue increased 13% year-over-year to R1.9bn, with group occupancy rising to 58% from 56%.

• Profit for the year grew 15% to R189m, and earnings per share rose 16% to 33.2c.

• Adjusted EBITDAR reached R586.2m, up 14% year-over-year, with a margin of 30.4%.

• Food & beverage revenue grew 22%, now contributing 19% of total revenue.

• All interest-bearing borrowings were fully settled, leaving no outstanding debt at year-end.

Financial highlights

• Revenue: R1.9bn (2023: R1.7bn), up 13% year-over-year.

• Group occupancy: 58% (2023: 56%), up 2 percentage points.

• Profit for the year: R189m (2023: R164m), up 15%.

• Earnings per share (diluted): 33.2c (2023: 28.6c), up 16%.

• Adjusted EBITDAR: R586.2m (2023: R515.8m), up 14%.

• Headline EPS (diluted): 33.2c (2023: 30.3c), up 10%.

• Adjusted headline EPS (diluted): 31.8c (2023: 23.2c), up 37%.

• Return on equity: 16.5% (2023: 15.6%).

• Dividends: Final 9c, Interim 6c, total up 15% year-over-year.

Outlook and guidance

• FY25 started with cautious improvement in economic sentiment.

• Occupancy for July and August 2024 slightly below prior year, but September shows a rebound.

• Planned FY25 capital commitments of R459.4m for hotel modernisation, innovation, and water resilience.

• Focus on new hotel opportunities in high-growth areas and innovative F&B offerings.