Gulf Hotels Group reports 12pc increase in revenue

22/10/2015 08:11 AST

Gulf Hotels Group has achieved a gross operating revenue of BD7.442 million in the third quarter of this year compared to BD6.628m in same period last year, an increase of BD814,701 or 12.29 per cent, said chairman Farouk Almoayyed yesterday.

For the nine-month period that ended on September 30, the group achieved a total gross operating revenue of BD24.553m compared to BD24.534m in same period last year, an increase of BD19,104 or 0.08pc.

Mr Almoayyed also announced that the group achieved for the third quarter a net profit of BD1.778m in comparison with BD1.897m achieved in the same period last year - a decrease of BD118,687 or 6.26pc on 2014 mainly due to the share of loss from associate as against gain last year.

For the nine-month period that ended on September 30 the group achieved a net profit of BD7.788m in comparison with BD9.465m achieved in the same period last year - a decrease of BD1.677m or 17.72pc on 2014.

Mr Almoayyed said the financial results emulate the effect of slight drop in business levels which is due to increased competition, overhead costs and reduced investment income but expressed his hope that in the coming quarter the management will overcome these and maintain healthy profit levels.

He thanked chief executive and director Aqeel Raees and the management of all subsidiaries, for their hard work and determination in these difficult times.

Mr Almoayyed added that in addition to the current portfolio of The K Hotel and Ocean Paradise Resort, Gulf Hotels Group has already signed hotel management agreements with two four-star hotels in Seef and in Manama area which will start operating by the end of this year and these will add more strength in developing Gulf Hotels Group.

On the expansion of the group into the stand-alone restaurant market, he further added that the company has acquired Block 338 in Adliya Tourism Zone and is developing plans for a multi-unit restaurant and leisure facility. Construction is expected to commence early 2016.

Mr Raees said that the soft refurbishment of the Tower Block rooms started in the second half of this year and expected to finish soon.

He added that the development of the Gulf Residence Amwaj in conjunction with Lona Real Estate is nearing completion and the 173 units; four star apartment-hotels will open early next year.

Mr Raees said that the construction of the new spa is well advanced with completion scheduled at the end of 2015. 'Construction has also commenced on a 108-unit serviced apartment facility Gulf Residence Juffair which is expected to take 22 months to complete."

Mr Raees said the success of any company comes down to its customer base, thanking the group's valued customers for their continuous support.

Gulf Daily News