GHG NET PROFIT GROWS 28 PER CENT TO $20M

12/08/2014 08:47 AST

Gulf Hotels Group (GHG) yesterday reported 28.29 per cent rise in net profit at BD7.57 million ($20.05m) for the first half ended June 30, compared with BD5.9m ($15.65m) in the same period last year.

The group achieved an increase of BD1.622m or 9.96pc in total gross operating revenue at BD17.91m in the first half when compared with BD16.284m in the same period last year.

For the second quarter ended June 30, the group saw an increase of BD593,043 or 19.45pc in net profit at BD3.64m when compared with BD3.05m in the same period last year.

The group achieved an increase of BD716,421 or 8.72pc in total gross operating revenue at BD8.93m for the second quarter, compared with BD8.22m in the same quarter last year.

Chairman Farouk Almoayyed said the financial results indicate a considerable growth in business levels and continued emphasis on cost management had the effect of maximising revenue conversion in maintaining healthy profit levels.

The group has commenced the development of the 230-room, five-star Gulf Hotel Business Bay in Dubai, he added.

This waterfront property, located 1.5km from Burj Khalifa and Dubai Mall, is now in design stage with construction expected to commence by mid-2015 and be completed mid-2017.

The group's chief executive and board member Aqeel Raees said that construction of a new 3,100sqm spa at the Gulf Hotel is underway with completion scheduled for mid-2015.

A new 120-seat Indian restaurant under development within the Gulf Hotel is set to open towards the end of the year, he said and it is expected to set new standards for Indian cuisine in the country.

Refurbishment of the South Wing building has commenced with completion due by the end of next month and the phased refurbishment of Gulf Executive Residence is underway, with completion expected by mid-2015, Mr Raees said.

In addition, the soft refurbishment of the Tower Block rooms will also commence early next year.

The development of the Gulf Residence Amwaj in conjunction with Lona Real Estate is nearing completion and the 173 unit, four-star apartment-hotels will open in the second quarter next year.

GHG is also currently developing a 78-unit serviced apartment facility in Juffair, with construction expected to commence in the second half of this year.

It is expected to take 18 months to complete.

"I am pleased to announce that the Gulf Hotels Group received the Forbes Middle East 500 Top Companies in the Arab World award," Mr Raees said.

"The criteria considered when producing the ranking were the total revenue, net profit, total assets and market capitalisation and the group ranked 351 among the 500 companies and fifth in the list of tourism and hotel industry companies."

Gulf Daily News