STRATEGIC REVIEW

Strategy at a glance

Our group is driven by an integrated strategy engineered around the six key focus areas and strategic enablers of:

Operating in a
COVID-19
environment
Brand
identity
Consolidated
Transformation
Environmental
sustainability
Information
technology

While these strategic components are discussed separately in this reporting section, we view these as interconnected and interdependent drivers of our business.

Given the fluid environment in which we operate, and the material issues influencing our operations and performance, these integrated strategic components are the ballast that stabilises our 'ship' and the rudder steering it towards realising our business vision – often through choppy waters.

Our overall strategy has largely remained consistent in recent years, but is being re-evaluated for the post-COVID-19 era.

Looking ahead

The COVID-19 pandemic has prompted the board and executive management to commit to:

  • conduct a strategic review of the group's portfolio to identify turnaround or disposal opportunities. Our expansion strategy outside of South Africa will conclude for the medium term, following completion of City Lodge Hotel Maputo
  • adapt the group's business model to retain profitability, initially by pursuing enhanced food and beverage opportunities, retail opportunities and on-site power generation
  • embrace technology across the group to increase revenue and lower operating and other costs. Specific programmes include:
    • the addition of new local and international online booking channels
    • leveraging our in-house property management system for further technological advancement
    • relaunching the loyalty programme and expanding our strategic partnerships
  • utilise artificial intelligence (AI) to improve demand prediction and inform pricing strategy
  • enhance the group's brands to gain market share from smaller, independent competitors
  • continue refurbishing and modernising the group's hotels
  • consider opportunities to acquire distressed competitor assets without placing further pressure on the group's working capital requirements.