City Lodge Hotels. JSE: CLH

City Lodge shares

Background of City Lodge

  • Established in Randburg in 1985, City Lodge Hotel Group is a multi-brand hotel chain with a portfolio of 57 hotels, mostly in South Africa, with two hotels in Kenya and one in Botswana. With over 7 000 rooms and suites, the group is amongst the largest 250 hotel chains in the world.

  • The company started with the opening of City Lodge Randburg by Swiss-born Hans Enderle, with an emphasis placed on quality accommodation, homely atmosphere and friendly service. After establishing more City Lodges, the group launched its highly popular second-tier Town Lodge concept in 1990. City Lodge shares have been available to buy on the Johannesburg Stock Exchange (JSE) since 1992.

  • City Lodge today owns 17 City Lodge Hotels, 12 Town Lodges, 22 Road Lodges, 5 Courtyard Hotels and the Fairview Hotel in Kenya. The group has a market cap of R 6.25 billion and recorded revenue of R 1.3 billion in 2016. City Lodge share price has enjoyed a strong rise in recent years.

City Lodge Shares Growth Driver

  • The group’s 2015 annual report highlighted admirable financial data, with normalised headline earnings increasing by 17.9% to R332 million and headline earnings per share increasing by 18.2% to 759.9 cents. Shareholders benefitted from a 21.9% dividends increase.

  • Average occupancies at the group’s South African operations increased from 63% to 67%, despite a general trend of negative occupancy growth due to new visa regulations. Business travel has continued to show gains despite the poor economic conditions in South Africa and negative sentiment around government’s performance. The group continues to buy into new hotels in its main market, and the acquisition of the Courtyard Hotel chain in 2015 signifies an intention to strengthen its presence. Underperforming properties will be put up for sale.

  • The group’s Botswana hotel also improved occupancies, but the Fairview Hotel in Kenya has been impacted by perceived Ebola risk and travel advisories prompted by terrorist activities. City Lodge has identified a short-term development pipeline which will be funded with around R890 million worth of capital and bank loan facilities. Expansion outside South Africa will be an important part of the group’s strategy, with new hotels earmarked for Kenya, Tanzania, Uganda, Namibia and Mozambique.

City Lodge Group Investor Tip

  • Despite deteriorating business confidence in South Africa, City Lodge has managed to improve occupancies, and anticipates that occupancies will continue to rise as the economy starts to stabilise. Overall, City Lodge boasts good cost containment and consistent profit growth which should instill confidence in investors looking to buy City Lodge shares.

  • Expansion outside Africa is well on track, which should further boost headline earnings and City Lodge share price. The live online stocks chart shows nothing but upward movement currently, and plenty of upside growth is still expected for those who purchase City Lodge shares.

City Lodge Major Shareholders

Enderle SA, Vuwa Investments, The Injabulo Staff Trust, Government Employees Pension Fund, Aberdeen Emerging Market Smaller Co.

  • Sector

    Consumer Discretionary

  • Industry

    Gaming, Lodging & Restaurants

  • Sub industry

    Lodging

How to buy City Lodge Group Shares

  • City Lodge : How to buy City Lodge Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy City Lodge Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in City Lodge Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase City Lodge Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in City Lodge Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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