GHG reports financial results for first quarter

Manama : Gulf Hotels Group (GHG) yesterday announced financial results for the first quarter of 2016 reporting a total Gross Operating Revenue of BD8.578 million compared to BD8.795m in the same period  of 2015, a decrease of BD216,873 or 2.47 per cent.

Commenting on the results, Chairman, Farouk Y Almoayyed stated that the difficult trading conditions will continue in 2016 along with recent changes in the Service Charge and Government Levy and increases in utility costs.

Almoayyed also announced that the company has generated a net profit of BD2.736m in comparison with BD3.112m achieved in the same period 2015; a decrease of BD375,370 or 12.06pc on 2015. 

On future projects, Almoayyed said the group is planning the development of the 224 room, five star Gulf Hotel Business Bay in Dubai. This waterfront property, located 1.5km from Burj Khalifa and Dubai Mall, is now in the design stage with construction expected to commence end-2016 and be completed end-2018.

Almoayyed also announced submitting an offer to the shareholders of Bahrain Tourism Company B.S.C (BTC) indicating its potential interest in acquiring 100 per cent of BTC’s shares through a share-swap offer. 

The proposed acquisition, according to the company, is expected to result in synergies that would benefit the shareholders of GHG and BTC. The process is in advanced stage.

CEO & Director Aqeel Raees expressed his satisfaction with the results taking into consideration the testing market conditions. 

Looking ahead he said, the group entered into the stand-alone restaurant market by acquiring Block 338 in Adliya Tourism Zone for developing it into a multi-unit restaurant and leisure facility. Construction is expected to commence in the first half of 2016. 

Construction of the new Spa is almost complete, he said adding that the construction of 108 unit Gulf Executive Residence Juffair has commenced and is expected to be completed in late 2017. 

On the operated properties, Raees further stated that 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 soon.