GHG announces BD9.197m net profit

Manama : Gulf Hotels Group (GHG) has reported financial results for 2015 announcing a net profit of BD9.197 million for the year. The group, which operates The K Hotel, Asdal Gulf Inn in Bahrain and the Ocean Paradise Resort (Zanzibar), said it would open the Gulf Residence Amwaj in the middle of 2016.

Commenting on the results, Chairman, Farouk Y. Almoayyed, stated that 2015 has been a very challenging year where the group has managed to achieve a total Gross Operating Revenue of BD32.370m, compared to BD33.311m in 2014, a decrease of 2.82 per cent for the year. Total Gross Operating Revenue amounted to BD7.817m for the last quarter of 2015 against BD8.777m in 2014; a decrease of 10.94pc.

“Overall business level in Bahrain with competition levels extremely challenging can be seen in the results where the major impact was on the hospitality industry,” added Almoayyed.

The group achieved a net profit of BD9.197m, a decrease of BD2.080m or 18.44pc on 2014. The net profit for the last quarter 2015 was BD1.409m against BD1.811m in 2014, a decrease of 22.19pc influenced by year-end provisions. 

During a board meeting held on February 17, 2016, the board of directors have recommended a cash dividend of 30pc  or 30 fils per share on the paid up capital for the approval of the shareholders.

Regarding a previously announced intention by the group to make a voluntary conditional offer for a share swap of 100pc of Bahrain Tourism Company BSC, Almoayyed said, “We are currently at an advanced stage towards completing the preparation of this offer in line with the Central Bank’s Takeovers, Mergers and Acquisitions module.”

On the expansion of the Group into the stand-alone restaurant market, CEO and Director Aqeel Raees said 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 first half of 2016. 

He 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 in the first half of 2016.

The construction of the new Spa is underway with completion scheduled in first half of 2016. GHG is currently developing a 108 unit serviced apartment facility in Juffair, with construction expected to commence by the end of quarter one of 2016 and take 18 months to complete.