City Lodge to close Newtown hotel in Johannesburg by March 2026

City Lodge Hotels Ltd., South Africa’s mid-market hospitality leader, will close its City Lodge Hotel Newtown in Johannesburg at the end of March 2026, shutting the 148-room property as part of a broader portfolio optimization strategy aimed at strengthening operational efficiency and long-term returns.

The Johannesburg hotel, located on the western edge of the city’s central business district, will cease operations ahead of the expiration of its lease in May 2026. 

Why City Lodge is closing Newtown hotel
The hospitality group said it opted not to renew the lease following a strategic review designed to align its property portfolio with evolving market conditions.

Opened in 2015 at a development cost of about R146 million ($11.5 million), the Newtown property features 148 rooms, an on-site restaurant, two boardrooms, a mini gym and a swimming pool.

City Lodge said the closure does not reflect the performance of the hotel team or broader demand trends in Johannesburg.

City Lodge restructures its hotel portfolio
“The decision not to renew the lease is part of our ongoing review process to ensure our portfolio remains aligned with long-term strategic priorities,” the company said in a statement.

Employees at the Newtown property will be redeployed to other hotels within the group where possible, while some may be assisted in finding opportunities outside the company.

Future expansion plans across Southern Africa
Founded in 1985 by Swiss-born entrepreneur Hans Enderle, City Lodge operates 58 hotels across South Africa, Botswana, Namibia and Mozambique under four brands: Courtyard Hotel, City Lodge Hotel, Town Lodge and Road Lodge.

The Newtown closure follows the sale of the Courtyard Hotel Arcadia for R37.3 million ($2.1 million) in February 2026 as the company continues to streamline its property portfolio.

The strategy comes as the hospitality operator’s financial performance continues to recover from the pandemic-driven downturn that severely affected global travel and hotel occupancy.

Financial recovery boosts group’s performance
For the six months ended Dec. 31, 2025, City Lodge reported revenue of R1.14 billion ($70.6 million), up 12% from the previous year. Profit reached R114.6 million ($7.1 million) while adjusted earnings per share rose 33%.

Occupancy climbed to 61.6%, the company’s strongest level since before the COVID-19 pandemic, supported by rising travel demand, cost discipline and refurbishment initiatives across several properties.

Despite the closure of the Newtown hotel, City Lodge said it remains focused on expanding and upgrading its portfolio, including a planned 55-room extension at its Waterfall City property and selective new hotel developments across Southern Africa.