City Lodge Hotels raises dividend: what it means for City Lodge stock

Published on 10/02/2026 at 02:25 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

City Lodge declared an 11.00-cent dividend for fiscal 2026. For City Lodge stock, adjusted earnings per share rose 20.00 percent in fiscal 2026.

City Lodge, ZAE000117792, Illustration mit AI erstellt.

City Lodge Hotels stock is tied to an 11.00-cent final dividend after the group reported its annual results for the year ended June 30, 2026. Sharenet reported on September 10, 2026 that City Lodge Hotels declared the dividend and increased adjusted diluted headline earnings per share by 20.00 percent to 41.6 cents.

Dividend rises to 11.00 cents

The final dividend compares with 9.00 cents for fiscal 2025, while total dividends declared per share reached 19.00 cents versus 15.00 cents a year earlier. The record date was October 2, 2026, and payment is scheduled for October 5, 2026, according to Sharenet.

The payout sits alongside a share buyback that acquired and canceled 38 million shares, equal to 6.40 percent of shares in issue at the beginning of fiscal 2026. The transaction cost ZAR 152.8 million at an average price of ZAR 4.02 per share.

Revenue growth meets lower profit

City Lodge Hotels generated revenue of ZAR 2.2 billion in fiscal 2026, up 10.00 percent from ZAR 2.0 billion in fiscal 2025. Adjusted EBITDAR rose 15.00 percent to ZAR 675 million, and its margin increased to 30.60 percent from 29.50 percent.

The cost of that growth is visible in the bottom line. Profit for fiscal 2026 fell 5.00 percent to ZAR 203 million, even as diluted earnings per share edged up 1.00 percent to 38.7 cents from 38.3 cents. Bizcommunity reported on September 11, 2026 that higher costs and foreign-exchange losses weighed on profit.

Occupancy improves after year end

Group occupancy reached 58.00 percent in fiscal 2026, up from 56.00 percent, while average room rates increased 7.00 percent. The early fiscal 2027 trend was firmer: occupancy reached 59.00 percent in July and 62.00 percent in August 2026, with month-to-date occupancy at 65.00 percent through September 9, 2026.

Dividend payment follows October 5

City Lodge Hotels is using operating cash flow and refurbishment spending to support its hotel portfolio. Cash generated by operations increased 20.00 percent to ZAR 656.9 million in fiscal 2026, while capital expenditure stood at ZAR 234.0 million.