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South Africa: City Lodge’s exit from loss-making East Africa assets prompted by lucrative offer

By Xolisa Phillip, in Johannesburg
Posted on Friday, 3 September 2021 12:55

City Lodge in Kenya (twitter)

An unsolicited offer, accompanied by a lucrative number, swayed South Africa's City Lodge Hotel Group (CLHG) to dispose of its East Africa portfolio, CEO Andrew Widegger tells The Africa Report.

The East Africa assets consist of Fairview Hotel, City Lodge Hotel at Two Rivers and Town Lodge Upper Hill in Kenya as well as the City Lodge Hotel in Dar es Salaam, Tanzania. Actis, ‘a leading global investor in sustainable infrastructure’, has swooped on the properties.

  •  The Kenya assets will be disposed of for a R140m ($9.7m) consideration and the Tanzania assets for R1m.
  • As at 31 December 2020, the net asset value of the East Africa portfolio was R473m, excluding intercompany loans, according to CLHG.
  • For the six months ended 31 December 2020, losses attributable to the East Africa portfolio were R371m.