//City Lodge parks dividend after loss of R486 m due to coronavirus

City Lodge parks dividend after loss of R486 m due to coronavirus

City Lodge Hotels parked its remaining dividend charge for the yr ended in June as it fluttered to a R486.6million loss on Covid-19 monetary fallout on its hotels.

The crew stated the day gone by that it was once not planning to pay dividends in the short term, given the affect of Covid-19 on its operations and the minimal income earned given that the assertion of a national catastrophe in March.

The announcement of future dividends remains issue to satisfying solvency and liquidity requirements,” said the group, adding that its income fell from a R205m earnings a year formerly amid lodge write-downs.

City Lodge said it experienced a R344.6m fall from net of tax, associated to the impairment of property, plant and gear alongside with right-of-use assets of some hotels.

“The impairments are due to management’s assessment of the poor impact of Covid-19 on forecast cash flows generated by means of the underlying motels and extended danger assessments that had a cloth affect on cut price prices applied across the portfolio,” said the group.

Total income tumbled 25percent to R1.16 billion, while operating costs aside from depreciation reduced 24percent.

City Lodge pronounced a headline loss of 388.1 cents per share in contrast to headline profits of 561.7 cents.

The team said that the common occupancies for the 12 months had declined from 55percent in the preceding monetary yr to 38percent.

In South Africa, occupancies diminished from 58percent in the previous monetary year to 41percent.

It said the decline represented a further 16-percentage-point fall from the occupancy for the six months to stop December.

(IOL)