The City Lodge Hotel Group (CLHG) has entered into a sale agreement for the City Lodge Hotel Sandton, Katherine Street property in Sandton, Johannesburg.
“The sale agreement includes a restriction on the use of the property for short-term accommodation purposes,” said Andrew Widegger, the group's CEO. He did not elaborate on who the buyer was or what the new owner planned to do with the hotel once the sale was concluded.
The sales agreement was signed on August 14.
The completion of the transaction is dependent on the fulfilment of the conditions precedent, including the conclusion of due diligence. Widegger said the consideration for the sale was expected to be R80 million (€3.9m).
Meanwhile, the CLHG, has begun rolling out its rebranding strategy. It will now be recognised as City Lodge Hotels. It has developed a new look and feel to complement the upgrade and has begun refurbishing some properties, including City Lodge Hotel V&A Waterfront.
“The group and hotel positioning and brand messaging are being refreshed, tapping into the slogan: ‘Life is hard. Check into easy’. The aim is to stand out from the crowd and strengthen top-of-mind awareness, positioning ourselves for a new generation of business and leisure travellers,” said Widegger.
The group’s annual financial statement revealed that revenues had grown by 55% year-on-year from R1.1 billion (€54m) in 2022 to R1.7 billion (€83m), with profits at R164 million (€8m) – up 100% for the same period. It expects this growth to continue alongside “several significant developments aimed at boosting the bottom line by enhancing the guest experience”, according to Widegger.
“Due to our robust financial position, our refurbishment programmes have recommenced to ensure our products are always in tip-top condition.”