City Lodge Hotels (CLH) H1 2026 earnings summary

Executive summary

• Revenue increased by 12% to R1.14 billion, driven by higher occupancy and room rates, with group occupancy rising to 61.6%, up 4.2 percentage points year-over-year and reaching the highest level since pre-COVID-19.

• Adjusted EBITDAR grew 16% to R371 million, with margin improving to 32.5%.

• Adjusted headline earnings rose 27% to R139 million, and adjusted diluted headline EPS increased 33%.

• Cash generated by operations increased 39% to R347 million, supporting share buybacks and refurbishments.

• Interim dividend declared at 8c per share, up 33% from the prior year.

Financial highlights

• Profit after tax was R114.6 million, down 5% due to higher tax and unrealised forex losses.

• Food & beverage revenue up 17% to R233.9 million, contributing 20.5% of total revenue.

• Operating expenses increased 9%, but cost per room sold rose only 3%.

• Diluted headline EPS at 21.5c, flat year-over-year.

• Average room rate rose 4% year-over-year.

Outlook and guidance

• Positive momentum expected to continue, supported by improved economic conditions and government spending.

• January and February 2026 saw total revenue up 4-5% and ARR up 9-11%, though occupancy declined.

• Environmental resilience projects and hotel expansion planned, including a 55-room addition at Waterfall City.