City Lodge Hotels raised its final dividend to 11 cents after revenue grew 10% and adjusted earnings per share rose 20%. Annual profit still fell 5%, as investors weigh the bigger payout against higher costs.
Occupancy at City Lodge Hotels reached 58% in fiscal 2026, up from 56% a year earlier. Average room rates rose 7%.
City Lodge Hotels trades on the Johannesburg Stock Exchange under the ticker CLH.JO and has ISIN ZAE000117792.
Revenue climbed 10% to ZAR 2.2 billion. Adjusted EBITDAR, a measure of operating earnings before interest, taxes, depreciation, amortization and rent, rose 15% to ZAR 675 million. The margin widened to 30.60% from 29.50%.
Profit still fell.
Adjusted diluted headline earnings per share rose 20% to 41.6 cents. Diluted earnings per share, a separate measure, edged up 1% to 38.7 cents from 38.3 cents.
A market notice lists the payment as $0.00676 per share, alongside the South African-currency dividend of 0.11 rand per share.
Activity picked up further at the start of fiscal 2027. Occupancy was 59% in July and 62% in August. Month-to-date occupancy reached 65% through September 9.
Those figures support the case for stronger operations. They do not guarantee lasting profit growth.
Sharenet reported total dividends of 19.00 cents per share for the year, up from 15.00 cents in fiscal 2025. According to a Moomoo market notice, the final dividend went ex-dividend on September 30. The record date is October 2, and payment is scheduled for October 5. An EasyEquities dividend calendar also lists the 0.11 ZAR per-share payment for October 5.
The gap between a higher payout and the pressures on the business also appears in a related dividend report. City Lodge's own results put costs and hotel performance at the center of the picture.
Cash generated by operations rose 20% to ZAR 656.9 million. Capital expenditure was ZAR 234.0 million.
That spending supports refurbishment of the hotel portfolio. Investors should weigh operating cash alongside the dividend, rather than treat the payout on its own as proof of financial strength.
City Lodge is listed on the Johannesburg Stock Exchange. Its reported amounts are in South African rand and cents, not U.S. dollars.
Revenue, margins, occupancy and operating cash all advanced. But annual profit fell, and the company reported higher costs and foreign-exchange losses. The dividend increase is not an all-clear. City Lodge is returning more cash while it works to make operating gains outweigh cost pressure.
