More rooms in town as City Lodge expands
November 17, 2009
The rapidly expanding City Lodge hotel group, which plans to increase its available rooms in South Africa by nearly a third by the end of next year, is now looking at expansion overseas and in neighbouring countries.
The chief executive, Clifford Ross, said in the annual report that India "continues to be seen as an attractive expansion destination and further research is under way into this vast and intriguing country".
However, following a detailed feasibility study on Nigeria, where Protea, Sun International and Southern Sun have invested, "it has been decided to place this expansion project on the back burner with a view to revisiting it at a later stage. Global economic uncertainty, scarcity of capital and the perceived risks of doing business in that country have informed the board's decision."
Instead, Ross says it seems likely that the group's expansion outside South Africa will start in Mauritius or neighbouring countries in southern Africa. "Ongoing research is being carried out on expansion opportunities in Mauritius, Namibia, Botswana, Zambia, Zimbabwe and Mozambique."
The group has appointed an international business development manager, Henri Joubert, who is "conducting intensive research into various countries and locations".
City Lodge plans to increase rooms available in South Africa to 6 433 by the end of next year, compared with the present 4 989, and will add eight new hotels to its present total of 44, reflecting the group's confidence in exponential growth in South Africa's tourism industry and international trade in the years following the World Cup.
The company pioneered the concept in South Africa of hotels that do not have restaurants but serve hot breakfasts only and now has four distinct brands in different price levels.
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