CITY LODGE HOTEL GROUP

WHAT we do

The City Lodge Hotel Group is a multi-brand chain offering a variety of locations, features and budget choices to business and leisure travellers.

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OUR business model

We own or lease and manage all of our 57 hotels under our own brands and primarily operate in the selected service hotel sector, which we pioneered in South Africa.

In this way we are able to manage our products and standards in such a way as to enforce consistency throughout the group. This consistency flows from hotel design, to product offering and service. The company will lease properties both in South Africa and offshore only where it is not possible to own the land and/or buildings. Such properties would be in the minority, allowing the group to leverage off its historic low-cost model to remain competitive in the current trading environment.

Through the implementation of a rigorous refurbishment strategy, we maintain our high standards of product quality and are able to introduce advancements/improvements to our product regularly. One such example of the benefits from this strategy is the implementation of our energy-efficiency initiatives, which has reduced our absolute energy consumption by more than 37% since its initiation in 2010.

Of our revenue, approximately 90% is generated from providing tip-top and clean accommodation to business and leisure travellers in a loving and caring environment. Providing services to complement this offering such as breakfast, light meals, sundowner bars and meeting facilities allow guests to select which services they wish to receive at an additional affordable price.

All our hotels receive the support of our central office, which manages and implements the group's strategies consistently across all our brands. As a result of this unique value proposition, we have managed to achieve an average return on equity of 23,3% over the past seven years, with a current client satisfaction rating of 86% for the past year. This was achieved against a backdrop of providing jobs to 1 656 people in South Africa and a further 295 beyond its borders, either directly or indirectly, thereby contributing to government's growth objectives.

VIEW ENLARGED OUR BUSINESS MODEL

INPUTS
KEY PROCESSES
KEY BUSINESS PROCESSES
Hotel operations
Food and beverages
Hotel administration
Customer relationship management
KEY SUPPORT PROCESSES
Legal and secretarial
Finance
Sales and marketing
Human resources
Information technology
Property and development
Operations
Procurement
OUTPUTS/OUTCOMES AND STRATEGIC LINK