Integrated Report 2020
The COVID-19 pandemic has significantly impacted the global economy and strained the hospitality industry due to travel restrictions and containment and mitigation directives, resulting in closed businesses, guest cancellations and significantly reduced travel around the world, including South Africa, the group’s primary country of operation, and the other countries in Africa where the group operates.
On 27 March 2020, South Africa commenced strict lockdown protocols to minimise the spread of COVID-19. Among the large number of lockdown protocols, the national government announced local and international travel restrictions, movement limitations and industry closures, dealing a blow to the hospitality industry. This temporary suspension of services affected all of CLHG’s operations.
The impact of the COVID-19 pandemic and the resulting lockdowns and the travel restrictions implemented in most countries across the world will have a prolonged impact on the recovery of the hospitality industry. These world-wide changes have forced CLHG to be innovative as we plan for a sustainable future in the post COVID-19 era. This calls for repackaging our hotel services to make them safer, cleaner and more attractive to guests.
In responding to the global pandemic, CLHG reacted rapidly to ensure the safety of our employees and guests.
The COVID Rapid Response Team (CRR) was introduced soon after the first COVID-19 case arrived in South Africa on 5 March 2020. The CRR Team is made up of the Executive and Senior Management and was established as a rapid response group of individuals in order to ensure a proactive approach to the fast changing environment and impact of the COVID-19 pandemic.
We implemented crisis management plans and survival strategies. These included instituting protocols for running quarantine hotels; implementing international hygiene standards; minimising touch points by using QR codes, rather than pen and paper; and educating our people to keep them safe.
The group has opened a large number of its hotels at the time of printing the IR and is ready to reopen any of its remaining temporarily suspended hotels on short notice. With lockdown measures easing, we are delighted to welcome back our business travellers and domestic and international leisure guests. Our high standards of hygiene, quality, and service remain intact and enhanced.
Before COVID-19 reached South Africa on 5 March 2020, CLHG launched a coronavirus education drive to inform staff and guests how to stay safe. It included disseminating an easy-to-understand guide that ensured the message was quickly and easily understood.
This educated staff about what the virus is, ways in which it is transmitted, symptoms to look out for, response protocols in the event of detection, and daily measures to prevent the contamination and spread of the virus in personal, operational and guests spaces.
During level 5 and 4 lockdown from 26 March to 1 June 2020, four of the group’s hotels remained open on a limited basis providing quarantine facilities to repatriated citizens, and hotels providing support to government authorities and essential and critical business continuity services.
Staff and guests were screened daily for elevated temperatures and other symptoms. The group immediately implemented strict COVID-19 cleaning and operating practices, as determined by the Department of Health and other experts in the field.
At those hotels which served as quarantine facilities, the Department of Health appointed resident nurses, with doctors visiting on a specific schedule. A member of the South Africa Police Service (SAPS) was always present to ensure strict compliance to the rules of quarantine and lockdown. The Departments of Public Works and Tourism and provincial bodies dealing in disaster management were also involved.
During lockdown levels 5 and 4, we prepared our hotels to open ready for a new COVID-19 world. As of 1 June 2020, we started opening hotels in a phased response to business traveller demand as South Africa moved to level 3 of the lockdown.
We capitalised on the time while the majority of our hotels were temporarily locked down to innovate the guest experience in preparation for re-opening for the COVID-19 era. This includes the introduction of a ‘low touch, high care’ approach to guest interactions. We offer a more streamlined, minimal contact check-in and check-out process, while minimising the need to touch menus, paypoints and other ancillary items. We introduced creative meal offerings to provide comfort and safety while our guests enjoy their meal in their rooms or communal spaces.
Guests complete a screening questionnaire either online prior to arrival, or at the screening station on arrival. All guests have their temperature taken on arrival and thereafter can progress to reception to complete check-in. Reception desks have protective screens which prevent face to face contact, keeping both our staff and guests safe.
The introduction of QR codes has made it possible for the reception at all our hotels to be contactable via guests’ mobile devices, using our state-of-the-art WiFi facilities to minimise touch points. While buffet dining was suspended, we encouraged a ‘stay in your room’ culture. As lockdown restrictions eased, we reopened our restaurants on a socially distanced basis. Breakfast is served in all our hotels, with the introduction of individually portioned cold offerings including an “on the go” Mzansi Box, beautifully presented, wrapped and portioned. Hot breakfast is served from the cook-out behind perspex screens that protect both the guest and chef during service.
Pizza to go is a new offering which can be eaten in guests’ rooms, providing the guest with quick meal options in an era where social distancing and limited gatherings are the order of the day. Sanitising stations are accessible throughout the hotel, while room cleaning protocols have been adapted to minimise contact.
Not all the group’s hotels have reopened at the same time. We initially earmarked specific hotels in key locations where larger numbers of business travellers may reasonably be expected. Hotels are reopened based on demand assessed through guest inquiries, bookings on our booking platforms, or through sales team projections.
CLHG has stringent, multi-disciplinary measures in place to keep the front- and back-of-house clean and safe, including:
As always, people come first, whether they are staff or guests.
We implemented stringent safety and hygiene protocols in line with the World Health Organization’s recommendations.
A recent COVID-19 risk assessment audit of City Lodge Hotel Bryanston – carried out by independent company Food Consulting Services (FCS) – reported a 98% score on hygiene and 100% on the microbiological index.
CLHG’s revenues were substantially impacted when almost all our hotels in South Africa and across the continent were forced to cease operations as a result of the pandemic.
In response, we implemented several proactive cost containment measures to improve resilience during this period of operational weakness and minimise the impact on the group’s liquidity. These include freezing all uncommitted capital expenditure, culling variable costs, and reducing fixed costs.
With the continued support of our shareholders, CLHG successfully raised proceeds of R1,2 billion through a fully subscribed rights offer which closed on 21 August 2020. The rights offer serves to support the group’s long-term viability and continued growth during the uncertainty arising from COVID-19 pandemic.
Responding to COVID-19 in numbers
