GHG posts first quarter net profit of BHD 2.892 million

Manama : Gulf Hotels Group (GHG) yesterday announced financial results for the First quarter of 2018, reporting a total Gross Operating Revenue of BD8.711 million compared to BD 9.343 million in same period 2017, a decrease of BD 631,798 or 6.76 per cent.

The company has generated a Net Profit of BD 2.892 million in comparison with BD 3.311 million achieved in the same period 2017; a decrease of BD 419,041 or 12.66pc.

“First quarter for year 2018 was very challenging, as trading conditions continued their downward trend in both the hospitality and retailing sectors,” said Chairman Farouk Y Almoayyed while announcing the results. 

Almoayyed confirmed that in the hotel sector, the drop in Revenue per Available Room (REVPAR) experienced by hotels in the past 4 years had continued into 2018, due to further erosion of room rates, which has an immediate effect on the bottom line. 

He also commented on changes in duty rates and pricing structures which have had a negative impact on the retailing sector in Q1, although in the long term this is expected to have a beneficial effect on the both the retailing and hospitality sectors. Q1 results were also affected by reduced profit from associates due to impairment losses.  

Adding to comments of the Chairman, CEO Garfield Jones stated, “Despite the challenges facing the hospitality sector, we are continuing to enhance our operations. The Gulf Hotel successfully won the contract for catering services at the Bahrain International Circuit for a two-year period and the Hotel will spend this summer upgrading a number of its facilities, including the Sherlock Holmes, the Gulf Convention Centre and the Al Waha, La Pergola and Fusions Restaurants”. 

He added “The Group recently completed a major bedroom renovation in its Crowne Plaza property and will continue to upgrade the property throughout 2018, enhancing the remaining bedrooms, plant and machinery and external areas.”