Earthworks began towards the end of 2015 and the foundations have commenced at the Two Rivers mixed-use complex site, to be followed by the construction of the hotel, which will become the 58th in the Johannesburg headquartered City Lodge Hotel Group.
The group also provided an update on its expansion plans in Tanzania and Uganda. It said that construction of the 147-room City Lodge Hotel Dar es Salaam has been delayed due to outstanding regulatory approvals impacted by Tanzania’s recent general election and the appointment of a new cabinet. It is expected that construction will commence within the next couple of months with completion expected towards the end of the second quarter/beginning of the third quarter of 2017.
Meanwhile, the group said that development of the 151-room Town Lodge Windhoek is on track. Construction of the hotel is expected to start in May/June and the hotel is scheduled to open in the second quarter of 2017. In Mozambique, final approvals are being sought towards the development of the 148-room City Lodge Hotel Maputo. This hotel is expected to open in the third quarter of 2017.
Commenting on its interim results, the group said its revenue rose by 17.3% to R753.4 million (South African rand) and its headline earnings grew by 17.5% to R194.1 million.
The group has 54 hotels in South Africa, two in Kenya and one in Botswana. Its brands include Fairview Hotel, Courtyard Hotel, City Lodge Hotel, Town Lodge and Road Lodge.