A Safe Stock Market House in South Africa

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500 million Rand for gross revenue will not knock the socks off any international investor, but a 33% profit margin should make anyone sit up and take notice. The gross and net revenue graphs of the City Lodge Hotels Limited look like an advertisement for new graphic software, and they represent solid and consistent business performance in a trying country environment.

South Africa has suffered on the global circuit ever since Nelson Mandela retired, and stock market players tend to be excessively influenced by public health and governance matters. It is not as though the mineral wealth of this gem of a country at the floor of Africa is unknown, but how many stock market Gurus would rate Johannesburg as a center of top grade brand management?

City Lodge Hotels is a prime example of business management acumen in South Africa, and who knows how many listed of matching caliber may lurk in the ranks of the domestic stock market? The company has 4 strong brands, and discovering their distinctive pleasures by staying in them, and by enjoying their culinary delights, is a dream for any stock market investor! Some of the company’s properties are set in the hinterland, and show scenic parts of the country, which can make for refreshing breaks during extended business trips to Johannesburg or Cape Town.

City Lodge Hotels, apart from its sensual attractions, is also an object lesson for the serious stock market observer, in terms of maintaining core values and identity during a growth phase. The company has expanded beyond all overt recognition from its humble beginnings, but sound leadership and team building skills lie beneath the veneer of 21st century hospitality enterprise. If only other founders could leave such enduring legacies for generations of stock market owners!

The company listed on the stock market in 1992, but started operations a few years earlier. It has grown steadily over the years, both in organic terms, and by an acquisition. It started with backing from a pension fund, and now operates a trust which allows all employees to be share holders. City Lodge Hotels is all about caring for people, be they customers, employees, or investors!

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