/ 25 January 2010

City Lodge sees lower full-year normalised profit

South African budget hotels operator City Lodge Hotels expects to report a 12% to 17% decline in full-year normalised headline earnings per share, sending shares more than 3% lower on Monday.

City Lodge, which operates hotel brands like City Yard, said diluted headline earnings per share, which include costs and effects of the black economic empowerment deal concluded in the prior year, would be between 103% and 108 % higher.

City Lodge ash suffered as an economic slowdown affects both business and leisure travellers, but it has fared better than rivals because it offers accommodation to value-conscious travellers.

Headline EPS is the main profit gauge in South Africa and strips out certain one-off, non-trading and financial items. — Reuters