(3 minutes read)
· South Africa’s City Lodge Hotels has incurred a net loss of R486.6-million for the year to June, joining the ranks of growing number of units in the tourism and hospitality sector
· City Lodge’s 62 hotels were closed due to pandemic and the hotel chains expectation of recovery is far –fetched
· The group feels that the trading levels 2019 will be restored only by 2022 financial year
South Africa’s City Lodge Hotels has incurred a net loss of R486.6-million for the year to June, joining the ranks of growing numbers of units in the tourism and hospitality sector.
City Lodge’s 62 hotels were closed due to pandemic and the hotel chain’s expectation of recovery is far -fetched. The group feels that the trading levels 2019 will be restored only by 2022 financial year.
Taking cognizance of the dithering bottom lines, the board has decided that no final dividend will be paid for the year to June. Its future dividends will be subject to satisfying solvency and liquidity requirements. The company has incurred a net loss of R486-million, versus a profit of R205.5-million in the previous year.
The hotel chain raised R1.2-billion through a rights offer in August and intends to use the net proceeds to repay a substantial portion of amounts owing under its secured facilities.
