JSE-listed hotel operator, City Lodge Hotels (City Lodge), on Wednesday said the trend of higher occupancies of the previous year extended into January and the first half of February this year.

The company, which has operations in many parts of Africa, said this trend is expected to continue because of the combined effect of gradual GDP growth and limited supply of new hotel capacity.

It said several major refurbishments have been completed or are underway, which is in keeping with the group’s on-going commitment to maintaining and upgrading its portfolio across all locations and brands.

The first 35 rooms of the 149-room City Lodge Hotel Waterfall City were opened in mid-December, with the rest of the hotel becoming operational at the beginning of February 2015.

City Lodge Hotel Newtown, Johannesburg, is progressing well and is on track to open its 148 rooms towards the end of calendar 2015.

Construction of the 90-room Road Lodge Pietermaritzburg will start next week, with completion scheduled for early November.

Detailed design work is at an advanced stage for the development of the 169-room City Lodge Hotel Two Rivers, Nairobi and the 147-room City Lodge Hotel Dar es Salaam, and it is expected that earthworks will commence at each of the locations during the second quarter of 2015. Both hotels are expected to open during the fourth quarter of 2016.

A memorandum of understanding (MOU), which is subject to finalisation of a financial feasibility study, has been
signed regarding a land and building lease in Kampala, Uganda, for the development of a 150-room City Lodge Hotel.

Similarly, an MOU, which is subject to certain conditions, has been signed in respect of a land and building lease for
a 140 to 150-room Town Lodge in Windhoek, Namibia.

Talks are at an advanced stage for the acquisition of land in Maputo, Mozambique, with a view to constructing a 150 to 160-room City Lodge Hotel.