City Lodge declared an interim dividend of 117 cents per share, a 24% increase on the 94 cents declared at the halfway stage the previous year.
The company restated prior-year results in accordance with International Financial Reporting Standards (IFRS).
Announcing its interim results, City Lodge said revenue rose 13% to 219.3 million rand, while operating profit was 20% higher at 103.8 million rand. Net profit, at 70.3 million rand, saw a 25% increase on year- earlier levels.
Net asset value was reported at 1,043 cents per share, up from 920 cents a year earlier.
Cash on hand rose by a net 15.2 million rand, compared to only 3 million rand the previous year.
City Lodge described its results as "highly satisfactory", and attributed them to buoyant trading conditions stimulated by the strong domestic economy. Average occupancies had risen by three percentage points to 80%, the highest level since 1996.
All four of the group's brands had contributed to this increase, it said.
Looking ahead, the group said significant expansion opportunities still existed for it in various parts of South Africa, and it continued to seek suitable sites to expand its current footprint of 38 hotels with 4,169 rooms across all nine provinces. Plans included the expansion of certain existing hotels as well.
"Favourable trading conditions are anticipated for the remainder of the financial year, albeit that, on a comparable basis, the group enjoyed very buoyant demand in the corresponding period last year," it concluded.
I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge
