Breaking down our...Business model
Inputs
Financial Capital
We use a combination of cash generated by operating activities, debt and equity funding for business operations, including running costs, property refurbishments, maintenance, new developments and strategic acquisitions:
- R265.8m in operating cash flow
- R715m in total debt funding facilities available
- R975.3m in equity
Manufactured Capital
Our brick-and-mortar properties, where our business is conducted, and guests enjoy unforgettable experiences:
- 59 hotels
- 7 534 rooms
- Furnishings, décor, hospitality, and catering equipment
- Technology
Intellectual Capital
Our intellectual capital includes our brands, supported by a wealth of in-house industry knowledge and hotel management expertise:
- Strong brand reputation
- Operating systems
- Policies and procedures
- Trademarks
Human Capital
Our people are the primary interface with our guests and custodians of the CLHG guest experience:
- 1 213 permanent employees (2021: 1 148)
- Formal and on-the-job training
- WOW service excellence programme
Social and Relationship Capital
Our relationships with guests, stakeholders, employees, communities, government, and regulators:
- Proactive relationship with stakeholders to promote a shared value proposition built on our brands
- Prioritising stakeholder groups for targeted interactions
- Corporate social investment (CSl) initiatives
Natural Capital
Our business activities depend on natural resources, particularly:
- Water consumption
- Energy consumption
- Land
Our process of delivering value
Our operating environment and our risk universe have an impact on how we create value.
Outputs
Our multi-brand hotel accommodation offering is designed to provide our guests with the comfort they need and is showcased in our four distinct brands which enable us to provide a diverse range of offers to clients based on their budgets.
See our brand reviews.
Additionally, we have a comprehensive conferencing as well as food and beverage offering.
Read more about our developments regarding our food and beverage offering.
Outcomes
- Revenue: R1.1b (2021: R0.5b)
- Food & beverage revenue R166.6m (2021: R66.5m)
- EBITDAR: R303.2m (2021: loss R136.7m)
- Investment to expand operations: R6m (2021: R74.6m)
- Investment to maintain operations: R10.05m (2021: R2.7m)
- Positive cash flows and return on capital employed
- Continued to maintain high standards of product quality through rigorous maintenance and refurbishment strategy as operations returned to normal
- New Eat-in food offering at Town Lodge and Road Lodge
- Disposal of 4 hotels in East Africa
- Average group occupancies: 38% (2021: 19%)
- Average SA occupancies: 40% (2021: 21%)
- Brand identity and innovation
- In-house innovation, including the use of AI to predict demand, and to facilitate the BAR pricing methodology which resulted in improved rate yields
- Ability to create competitive offerings in response to changing industry demands
- Technology and process upgrades to improve guest and employee experiences
- Strong brands and solid reputation
- R372.67m (2021: R282.3 million) salaries and wages paid
- Ratio of CLHG minimum wage to the industry average minimum wage: 2.5 :1
- Level 5 B-BBEE score to be reviewed in November 2022
- A qualified, experienced, and motivated workforce
- 7 146 training interventions which benefitted employees
- Total number of training interventions which benefitted female employees: 4 443 (2021: 8 731)
- Average customer satisfaction score of 90.6% (2021: 92.8%)
- CSI spend of R1.0 million (2021: R1.2 million)
- Economic benefits to communities and organisations, vendors and suppliers
- Renewable energy generated: 2.1 million kWh (2021: 1.8 million kWh)
- Energy consumption increased by 34%
- Water consumption increased by 32% due to increased occupancy
- Total emissions: 26 488 tCO2e
- Single-use plastic-free amenities
- Hydration stations at all hotels
- Self-generated renewable energy is 9% of total energy consumed
