Revenue drops 1.97pc; GHG Q1 NET PROFIT DOWN 20.75 PER CENT

Gulf Hotels Group (GHG) yesterday posted a 20.75 per cent decline in its 2015 first quarter net profit hurt by intense price competition, overhead costs and reduced investment income. 

For the first quarter, net profit was BD3.112 million, compared with BD3.927m achieved in the same quarter a year ago, which is a decrease of BD814,804 or 20.75pc.

Total Gross Operating Revenue was BD8.795m down compared to BD8.972m in same period 2014, slight decrease of BD176,721 or 1.97pc.

Chairman, Farouk Y Almoayyed said that Gulf Hotels Group has already signed Hotel Management Agreements with Two Four-star Hotels in Seef and in Manama area which will be running from Mid-2015 and these will add more strength in developing Gulf Hotels Group as an international Chain. 

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 in the 2nd half of 2015. 

Chief Executive Officer and Director Aqeel Raees said that the Refurbishment of the Gulf Hotel’s Awal Ballroom will take place in the summer of 2015. Work has already started to create a new lounge located off the Hotel’s Al Andalus Lounge, the fit out of which will start soon and it will be ready to take customers mid-2015. Refurbishment of Gulf Executive Residence is scheduled to be completed by middle of the year. In addition, the soft refurbishment of the Tower Block rooms will also be undertaken in the 2nd half of 2015.

He also said that the construction of the new Spa is underway with completion scheduled in 3rd quarter of 2015.