City Lodge Hotels Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1986/002864/06)
ISIN: ZAE000117792
Share code: CLH
("City Lodge Hotels" or the "company" or the "group")

CONSOLIDATED ANNUAL FINANCIAL STATEMENTS AND CASH DIVIDEND DECLARATION
FOR THE YEAR ENDED 30 JUNE 2025

- Revenue R2.0bn                                         (2024: R1.9bn)    up by 3%
- Group occupancy 56%                                    (2024: 58%)       down by 2% points
- Adjusted EBITDAR R589m                                 (2024: R586m)     up by 0.4%
- Profit for the year R213m                              (2024: R189m)     up by 13%
- Earnings per share (EPS) (diluted) 38.3c               (2024: 33.2c)     up by 15%
- Headline earnings per share (HEPS) (diluted) 33.1c     (2024: 33.2c)     down by 0.3%
- Adjusted headline earnings per share (diluted) 34.6c   (2024: 31.8c)     up by 9%
- Total dividends declared per share 15c                 (2024: 15c)       no change

Commentary
City Lodge Hotels has navigated the complex, shifting international and local economic pressures
and delivered a stable performance during the year. The group has invested in eight new strategic
refurbishments, a refreshed website, returned value to shareholders by repurchasing R30 million
of our shares, declaring steady dividends, and remains debt-free and ready to capitalise on growth
opportunities in key strategic locations.

Financial review
The geo-political uncertainty dampened occupancy during the year, which was down by two percentage
points to 56% (2024: 58%). The group had 48 748 (2024: 33 353) room nights (2% of total room night
inventory) out of inventory during the year due to refurbishments at eight hotels. This partial
recovery in occupancy follows the 4% point decrease in the first six months, and was further
mitigated by average room rate increases of 7% (2024: 9%) for the year, resulting in growth in
rooms revenue of 2%. Total revenue for the year ended 30 June 2025 increased by 3% to R2.0 billion
(2024: R1.9 billion). Our food and beverage (F&B) offer has now established itself in all brands
over the last two years. Growth has stabilised but continues to show good prospects for further
improvement, delivering an increase of 8% to R393.2 million (2024: R363.3 million), and now
accounting for 20% (2024: 19%) of total revenue.

Cost containment has been a key focal point over the year, with total operating costs increasing
by only 4%.

The group generated EBITDAR of R641.5 million (2024: R574.4 million) for the year, and an EBITDAR
margin of 32.1% (2024: 29.8%). Adjusted EBITDAR margin which excludes unrealised losses on foreign
exchange, the sale of City Lodge Hotel (CL) Katherine Street and the derecognition of the lease
liability on the purchase of the CL Fourways land, was 29.5% (2024: 30.4%).

Taxation amounting to R98.4 million (2024: R65.8 million) increased by 50%. Taxation includes
R9.6 million of capital gains tax on the sale of CL Katherine Street, and a R13.5 million impairment
of the deferred tax asset in Namibia due to changes in the tax legislation relating to the treatment
of assessed losses.

Profit after tax of R213.0 million (2024: R188.7 million) increased by 12.9%, and diluted earnings
per share increased by 15.4% to 38.3 cents (2024: 33.2 cents).
Diluted headline earnings per share remained fairly flat at 33.1 cents (2024: 33.2 cents), whilst
adjusted diluted headline earnings per share, excluding unrealised losses on foreign exchange and
exceptional items (the derecognition of the lease liability on the purchase of CL Fourways land and
the impairment of the deferred tax asset in Namibia) has increased by 9% to 34.6 cents (2024: 31.8 cents).

Adjusted diluted headline earnings per share recovered in the second half of the year delivering a
26% increase compared to the second half of 2024.

Strategic update
The group has refinanced its interest-bearing borrowings on more favourable commercial terms
and retains access to R600 million in debt facilities which mature between three and five years.
The group also has access to R115 million overdraft facilities, and is debt-free as at 30 June 2025.

We have actively managed our cash generated by operations of R548.6 million (2024: R576.7 million)
by strengthening the balance sheet, returning capital to shareholders, repurchasing and cancelling
R30 million of our shares at an average price of R3.92 per share and completing eight refurbishments.

The strategic focus for the year has been the modernisation and refurbishment of eight hotels, and
delivering the new brand standard for the next generation hotels. These projects included CL Lynnwood,
Town Lodge (TL) Bellville, Road Lodge (RL) N1 City, RL Durban, TL George and CL Umhlanga Ridge, as well
as the commercial areas at Courtyard Hotel (CY) Sandton and CL V&A Waterfront. Two additional floors
were completed at CL Maputo adding an additional 54 rooms into inventory, and the remaining floor with
26 rooms is scheduled for completion in Q1 FY26. The group spent R282.9 million (2024: R164.9 million)
on capital expenditure during the year. Major refurbishments at CL Johannesburg Airport and CY Gqeberha
are currently in progress.

The group has achieved its best ever B-BBEE scorecard rating of a level 1 during the year.

Outlook
The economic outlook has improved for FY26, as the GNU's sustainability, although having been tested
over the last 12 months, prevailed. In addition, further interest rate cuts are expected. The upcoming
G20 summit in November will deliver demand for hospitality services, and boost business confidence in
the region.

Total capital commitments of R296.6 million have been authorised for the 2026 financial year. The funds
will be applied to projects focused on deriving value through the refurbishment of a further five hotels.
Further technology innovation and investment is planned.

Environmental sustainability and resilience solutions remain a priority, as we initiate Phase 3 of the
solar installations, including the addition of more water sustainability solutions.

The group continues to seek and actively pursue selected opportunities for new hotels in high growth
areas within South Africa.

The 2026 financial year has commenced positively with group occupancies for July and August 2025 each
up four percentage points, to 60% and 59%, respectively, compared to the prior year. Similarly, month
to date occupancies up to 10 September 2025 are up by four percentage points to 63% (2024: 59%). Food
and beverage revenues are up 16% and 14% respectively, for July and August 2025. We are optimistic
that these positive trends will continue.

Declaration of dividend
The board has approved and declared a final dividend (number 68) of 9.00 cents per ordinary share (gross)
(2024: 9.00 cents) in respect of the year ended 30 June 2025.

The dividend will be subject to Dividend Tax. In accordance with paragraphs 11.17(a)(i) to (ix) and
11.17(c) of the JSE Listings Requirements the following additional information is disclosed:
- the dividend has been declared out of distributable reserves;
- the local Dividend Tax rate is 20% (twenty per centum);
- the gross local dividend amount is 9.00 cents per ordinary share for shareholders exempt from the
  Dividend Tax;
- the net local dividend amount is 7.20 cents per ordinary share for shareholders liable to pay the
  Dividend Tax;
- the company currently has 590,517,532 ordinary shares in issue; and
- the company's income tax reference number is 9041001711.

Shareholders are advised of the following dates:
- Last date to trade cum dividend              Tuesday, 30 September 2025
- Shares commence trading ex dividend            Wednesday, 1 October 2025
- Record date                                       Friday, 3 October 2025
- Payment of dividend                               Monday, 6 October 2025

Share certificates may not be dematerialised or rematerialised between Wednesday, 1 October 2025 and
Friday, 3 October 2025, both days inclusive.

Additional information
This short-form announcement is the responsibility of the directors and is only a summary of the
information contained in the consolidated annual financial statements for the year ended 30 June 2025
("AFS FY2025") and does not contain full or complete details. The AFS FY2025 has been audited by the
external auditor, PricewaterhouseCoopers Inc. who has expressed an unmodified audit opinion thereon.

The AFS FY2025 is available on the company's website www.citylodgehotels.com.

The AFS FY2025 can also be accessed directly using the following JSE cloud link:
https://senspdf.jse.co.za/documents/2025/jse/isse/CLH/ye2025.pdf

Any investment decisions should be based on the AFS FY2025 published on the link above and on the
company's website.

For and on behalf of the board
Bulelani Ngcuka       Andrew Widegger
Chairman              Chief executive officer

11 September 2025

Directors: Bulelani Ngcuka (Chairman), Andrew Widegger (Chief executive officer)*, Frank Kilbourn (Deputy chairman),
Stephen Enderle#, Deon Huysamer, Andrew Lapping, Dr Sizakele Marutlulle, Mathukana Mokoka, Dhanisha Nathoo*,
Lindiwe Siddo*
*Executive #South African and Swiss

Registered office: The Lodge, Bryanston Gate Office Park, Corner Homestead Avenue and Main Road,
Bryanston, Johannesburg, 2191

Transfer secretaries: Computershare Investor Services Proprietary Limited, Rosebank Towers, 15 Biermann Avenue,
Rosebank, 2196
Company secretary: Melanie van Heerden

Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank Limited