GHG announces net profit of BD 11.036m

Manama : Gulf Hotels Group (GHG) has reported 2017 financial results. The Group owns the Gulf Hotel, the Crowne Plaza Hotel (via its subsidiary Bahrain Tourism Company SPC), and Gulf Brands International and operates The K Hotel, Asdal Gulf Inn and the Ocean Paradise Resort in Zanzibar (part owned).

Chairman Farouk Y Almoayyed stated that year 2017 was very challenging, particularly in the hospitality sector, due to increased room inventory and competition on the island. 

Despite the difficult trading conditions Almoayyed announced that for the year ended 31st December 2017, GHG achieved a total Gross Operating Revenue of BD 37.261 million compared to BD 36.376m in same period 2016, an increase of BD 884,543 or 2.43pc. 

The Group generated a Net Profit of BD 11.036m in comparison with BD 10.007m achieved in the same period 2016 (before the one time bargain profit of BD 6.125m), an increase BD 1.029m or 10.28 per cent.  

For the last quarter of 2017 the Group reported Net Profit of BD 2.357m compared to BD 2.627m for the same quarter of 2016, a decrease of BD 270K or 10.28pc. 

Almoayyed highlighted the challenges facing the hospitality industry which has experienced declining occupancies and room rates over the past 4 years. 

CEO Garfield Jones stated, “Overall the Group has performed well in 2017 although the declining trend in the hospitality sector is a real concern”.