Luxury hotel closing down after 10 years in South Africa
City Lodge Hotel Newtown—based in Johannesburg—is scheduled to close at the end of March 2026, and the lease, which terminates at the end of May 2026, will not be renewed.
The hotel, located on the western side of Johannesburg’s CBD, has 148 rooms, a restaurant on-site, two boardrooms, a mini gym, and a swimming pool. The hotel was opened in 2015, costing a total of R146 million to develop.
“The decision not to renew the lease is part of our ongoing business review process, which ensures that our portfolio remains aligned with the group’s long‑term strategic priorities,” the group said.
“This decision is not related to the performance of the hotel team, the City Lodge Hotels brand, or the broader Johannesburg market.”
The 40-year-old South African-based City Lodge group currently has 58 hotel properties spanning across four countries: Botswana, Mozambique, Namibia, and South Africa.
The group houses four hotel brands: Courtyard Hotel, City Lodge Hotel, Town Lodge and Road Lodge.
The hotel group’s four brands offer a variety of options. The Courtyard Hotel brand, which operates only in South Africa, is marked as “upscale” by the group—indicating a target of business, leisure, and long-stay travellers looking for “upmarket accommodation.”
City Lodge Hotel, operating in South Africa and Mozambique, is classified as “upper mid-scale,” promoting an easy-living ethos and environmentally friendly bathroom amenities.
Town Lodge, marked as “upper mid-scale,” operates in South Africa, Botswana, and Namibia, promoting ample parking spaces and reliable WiFi.
Road Lodge, the group’s “economy” hotel, operates in South Africa and follows the same operational processes and service promises as all other City Lodge hotel brands.
The move to close the Newtown City Lodge Hotel is part of City Lodge’s portfolio optimisation for the second half of 2025, with the non-profitable hotel to be closed and the Courtyard Hotel Arcadia sold.
“We look forward to welcoming Newtown guests to our nearby hotels and appreciate the continued support of all stakeholders as we manage this transition smoothly,” the group told BusinessTech.
“Staff will either be redeployed to other properties within the group, whilst others may opt to pursue new opportunities.”
The City Lodge outlook
City Lodge Group recently released its financial results for the six months ended 31 December 2025, recording a revenue of R1.14 billion—up 12% from its previous results.
The hotel group spent R155 million in capital expenditure.
Of this, R152 million was spent on the refurbishment and modernisation of City Lodge Hotel at the Johannesburg International Airport, Courtyard Hotel in Gqeberha, and the restaurants and commercial areas of City Lodge Umhlanga Ridge and City Lodge V&A Waterfront.
In addition, the Courtyard Hotel Arcadia was sold in February 2026 for a gross consideration of R37.3 million. The group said the funds from the sale have been used to settle parts of the debt.
In 2021, the City Lodge group sold its stakes in three hotels in Kenya and one in Tanzania to UK-based investment firm Actis for a total of R142 million.
The hotels in Kenya—a 127-room Fairview Hotel in Nairobi, a 171-room City Lodge Hotel at Two Rivers in Runda, and an 84-room Town Lodge Upper Hill in Nairobi were sold for nearly R141 million.
However, the 148-room City Lodge Hotel in Dar es Salaam, which opened in 2018, owned by City Lodge on a leasehold basis, was sold for R1 million.
When considering impairments, the Kenyan and Tanzanian hotels incurred losses of over R371 million during the six months ending in December 2020, as the COVID-19 pandemic continued to severely impact the global tourism sector.
The group said the proceeds from the sale of its Kenyan and Tanzanian hotels were used to help settle its debt.
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