Revenue was up 9% to R533.9m on a slight rise in average occupancies to 64% from 63% and higher room rates achieved while normalised operating profit was up 11%. The interim dividend was up 15% to 202c.
City Lodge said trading conditions in the review period were mixed‚ affected by muted business and consumer confidence.
"The Road Lodge brand was particularly affected by pressure on consumers and small businesses‚ but continued to achieve the highest overall occupancies of the group's four brands‚" it said in a statement.
Chief executive Clifford Ross said trading was expected to remain mixed in the second half of the financial year with business confidence likely to be subdued in the lead-up to the general election in May.
"Beyond that‚ we believe that occupancies will continue to improve due to the lack of new accommodation capacity coming on stream and improved demand‚" Ross said.
The City Lodge Hotel Group operates 55 hotels offering 6‚755 rooms in South Africa‚ Kenya and Botswana.