City Lodge Hotels posts strong H1 2026 results, with 33% adjusted earnings growth and rising occupancy boosting revenue.

Last updated: February 20, 2026 7:15 am

Feyisayo Ajayi - Head of Digital strategy and growth Published February 20, 2026

City Lodge Hotels Limited, a top South African hospitality group, reported strong interim results for the six months ended December 31, 2025, with revenue surpassing $70 million, driven by improved hotel occupancy and operational efficiency.

City Lodge reports solid revenue and adjusted earnings growth
According to its recently released interim report, City Lodge Hotels posted a profit of R114.62 million ($7.1 million) for the six months under review, slightly down from R120.41 million ($7.45 million) a year earlier.

However, adjusted earnings per share surged 33% to R2.61, while total revenue increased 12% to R1.14 billion ($70.58 million), led by a 61.6% occupancy rate, the highest since pre-Covid-19.

Operational efficiency, strategic refurbishments, and disciplined cost management contributed to a 16% rise in EBITDAR to R371 million ($22.97 million), with margins expanding to 32.5 percent. Key refurbishments at City Lodge Johannesburg International Airport, Courtyard Sandton, and Gqeberha improved guest experience and operational returns.

Rooms revenue increased 10%, supported by a 4% rise in average room rates, while food and beverage revenue grew 17% to R233.9 million ($14.48 million), reflecting stronger dining demand.

Cash generated by operations rose 39 percent, enabling the group to repurchase 36 million shares, equivalent to 6% of issued capital. Interim dividends rose 33% to R0.08 per share, signaling confidence in cash flow and long-term growth.

Strategic expansion positions City Lodge for growth
City Lodge Hotels continues to capitalise on improved economic trends in South Africa and B20 and G20 tailwinds.

Expansion plans include a 55-room extension at Waterfall City and selective new hotel opportunities, strengthening the group’s portfolio.

Total assets increased to R3.15 billion ($195.01 million) from R3.1 billion ($191.92 million), while retained earnings rose from R405.49 million ($25.1 million) to R529.11 million ($32.76 million), underlining the company’s financial resilience and capacity for reinvestment.

City Lodge Hotels’ strategic focus on operational efficiency, portfolio enhancement, and sustainable growth positions it well to navigate the post-pandemic hospitality market and deliver long-term shareholder value.