GHG Q3 net rises 27.76pc

Gulf Hotels Group (GHG) yesterday announced a 27.76 per cent increase in its third-quarter net profit saying that the group’s performance over last year was boosted by Bahrain’s hospitality industry, which continues to show signs of recovery. In Dubai market, Chairman, Farouk Almoayyed said, the group, however, is facing many challenges with a significant oversupply of rooms in the lead up to EXPO 2020 which has resulted in a substantial drop in room rates, occupancy and REVPAR (Revenue per available room).

GHG also said it intends to reopen its newly refurbished Fusion restaurant with the addition of an outdoor rooftop terrace overlooking the Manama skyline in the fourth quarter. Making the announcement, CEO Garfield Jones said the outlet has been rebranded as ‘Fusions by Tala’, under the guidance of our talented Bahraini chef, Tala Bashmi.

Gulf Hotels Group’s third-quarter net profit was BD 1.428 million compared to BD 1.117m in the year-ago quarter, with an increase of 27.76 per cent. Earnings per shares was 6 fils compared to 5 fils in the third quarter of last year. Increase in third-quarter net profit was attributed to significantly reduced costs as the pre-opening costs for the Gulf Court Hotel Business Bay Dubai, which opened in August 2018, were written down in Q3 2018.

These savings were offset by higher interest charges. Revenue rose 13pc to BD 9.295m from BD 8.225m in the third quarter of last year. Gross operating profit was BD 2.841m, compared to BD 2.922m in the third quarter of last year, a decrease of 2.78pc Total comprehensive income was BD 1.732m, compared to BD 1.201m in the third quarter of last year, with an increase of 44.31 pc. Year to date, the company achieved a net profit of BD 4.216m compared to BD 5.739m in the previous year, with a decrease of 1.523m or 26.55 pc.

Earnings per shares was 19 fils compared to 25 fils in last year. The decrease in the net profit for first three quarters of the year in comparison to last year resulted from increased depreciation of BD 1.991m resulting from the new Dubai property and the new Gulf Executive Residence Juffair (opened Jan 2019) and other renovations projects executed during 2018. The YTD Net Profit was also negatively affected by increased interest charges and the preopening expenses of the Gulf Executive Residence Juffair charged in Q1 but offset by lower costs as mentioned earlier.

Revenue was BD 28.114m, compared to BD 24.825m in last year, with an increase of 13.25 pc. Gross operating profit was BD 9.119m, compared to BD 8.763m in last year, with an increase of 4.07pc. Total comprehensive income was BD 6.306m, compared to BD 6.035m in the previous year, with an increase of 4.49 pc. The total assets for the YTD reached BD 134.859m compared to BD 141.644m in the previous year, with a decrease of 4.790 pc.