STRATEGIC REVIEW

Material issues

Our operations, sustainability and success are informed and influenced by a range of internal and external factors, as well as the concerns raised by our stakeholders. To determine those influences that are materially significant to our group, we follow a rigorous and ongoing assessment process, which includes extensive engagement with all our stakeholder groups. These identified material issues are then ranked in terms of importance and potential impact and used to inform the CLHG's strategy.

Remaining viable
in the COVID-19
operating environment
  • Phased reopening of hotels based on demands
  • Creating safe and trusted hospitality environments through hygiene audits and global accreditation
  • Innovative new products and guest offerings to support the COVID-19 challenges
  • Reinventing our food and baverage options as an expanded revenue stream
  • Brand expansion through marketing campaigns targeting domestic leisure market
  • Flexible pricing based on artificial intelligence and predictive models
  • Expansion into new online booking channels
Establishing
financial sustainability
in the short term
  • Completion of R1.2 billion rights offer
  • Cost containment measures to limit the cash burn
  • Temporary reduction in salaries during lockdown
  • Freeze on uncommitted capital expenditure
  • Waiver of debt covenants for 30 June 2020 and December 2020
  • Managing continued debt facility availability with our funders
  • Resolve the BEE special purpose vehicle (SPV) debt settlement prior to expiry on 31 January 2021
  • Review turnaround strategies and potential disposals of historically under performing hotels.
Ringing in the changes-
preparing CLHG for the
'new normal'
  • Digital innovation to support the new Guest 2.0 contactless experience
  • Reconfiguring public spaces in hotels
  • Refreshing our brands and adopting innovative marketing strategies
  • Eliminating single-use plastics and offering branded merchandise and amenities
  • Continuing our drive to reduce our impact on natural resources, including the further roll-out of solar installations at our premises.