Strong revenues lift Gulf Hotels Group’s profit

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Gulf Hotels Group (GHG) reported a jump in its 2022 quarterly and ninemonth profit, as revenues grew helped by rebounds in hospitality industry from the COVID-19 pandemic.

The Group’s Chairman – Farouk Almoayyed said the group is “recording strong growth on 2021 performance and is coming close to 2019’s pre-pandemic figures, despite a significant increase in competition in Bahrain and Dubai and the economic challenges globally”.

Almoayyed also said that the group is focusing on further expansion in Bahrain and Saudi Arabia.

“As part of that expansion, from 1st January 2023, the Group’s management will take over the operation of the Crowne Plaza Hotel, which will be converted to a franchise agreement with IHG, in place of the existing management agreement.”

Garfield Jones – Chief Executive Officer at GHG added: “In addition to pursuing a number of expansion opportunities, our team has been working closely with leading interior designers, Hirsch Bedner Associates, on the refurbishment of the lobby and lounges at the Gulf Hotel which will commence in Q2 2023 and in parallel, we will also be working on the refurbishment of key areas of our Crowne Plaza property.”

Q3 results

Quarterly net profit jumped 54.4% to BD 1.288 million from BD 833,821 in the year-ago quarter.

The earning per share was 6 fils compared to 4 fils in the third quarter of last year. Revenue rose 16.4% to BD 7.218 m from BD 6.200 m in the year-earlier quarter.

Gulf hotel attributed the increase mainly to an increase in different segments of revenue across the Group by BD 1.017 m.

Nine-month results

Net profit increased by BD 3.910 m to BD 4.112 m from BD 202,187 in the same period a year ago.

The increase was attributed mainly to an increase in revenue of BD 6.618 m from the core business of the group, increase in profit from associates of BD 756,646, increase in dividend income of BD 67,116 and BD 300,134 from management fees and rental, while last year had a government support of BD 365,145.

Earnings per share was 18 fils compared to 1 fils in the nine months of the last year.

Revenue jumped 43.2% to BD 21.946 m from BD 15.328 m in the same period a year ago. The total assets for the YTD reached BD 111.752 m compared to BD 113.446 m at end of the last year, with a decrease of 1.695 m or 1.4 %. Operation expenses have increased proportionately of BD 3.923 m with the increase in revenue and Depreciation reduced by BD 421.616.