GHG operating net profit rises 17.60pc
Manama : Gulf Hotels Group (GHG) yesterday announced financial results for the third quarter of 2017, reporting a total Gross Operating Revenue of BD27.546 million compared to BD 26.055m in same period 2016, an increase of BD1.491m or 5.72 per cent.
For Q3 the Group achieved Gross Operating Revenue of BD9.160m compared to BD9.672m in same period 2016, a decrease of BD512 K or 5.3pc.
The company generated Q3 YTD Net Profit of BD8.679m in comparison with BD 7.381m achieved in the same period 2016; an increase of BD1.298m (or 17.59pc).
For Q3 2017 the Group achieved a Net Profit of BD2.809m in comparison with BD 2.894m achieved in the same period 2016; slight decrease of BD85 K on 2016 (or 2.91pc). However published profit of Q3 YTD includes One Time Bargain Profit of BD6.126m associated with the acquisition of Bahrain Tourism Company.
Highlighting the challenges facing the hospitality industry, Farouk Y. Almoayyed said that the hospitality industry, which has experienced falling occupancies and room rates over the past 4 years resulted in a 21.3pc drop in revenues since 2014 for Gulf Hotel.
“Many hotels will be forced out of business if the government does not act to support the industry and stimulate business,” he said pointing out the increases in duties, employment costs, overheads and utilities.
Citing the challenging Bahrain market conditions, Almoayyed also confirmed that the “Group will concentrate on external expansion in order to diversify its portfolio” highlighting UAE and KSA as key target markets for both the hotel and restaurant segments.
He, however, said that the group expects to continue expanding within Bahrain with projects such as the development of a multi-restaurant facility in the Block 338 area and the development of the Gulf Executive Residence Juffair.
The Group’s Chief Executive Officer, Garfield Jones, reiterated the comments of the Chairman, stating that trading conditions in the hotel and restaurant sectors were extremely challenging. “Our current growth results from our acquisition of Bahrain Tourism Company in 2016 however the underlying trend in the industry is negative,” he said.
He further indicated that the bedroom refurbishment of the Group’s Crowne Plaza hotel is progressing well with completion expected by first quarter of 2018 and that the construction of the 109 unit Gulf Executive Residence Juffair is now in the fit-out phase, expecting the property to open for business in the second half of 2018.
The Group will also complete a full refurbishment of the Gulf Convention Centre in 2018 along with upgrades to the Gulf Hotel’s Al Waha Restaurant and Sherlock Holmes outlet.
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