GHG posts net profit of BD12.3m for Q3 2016

Manama : Gulf Hotels Group (GHG) achieved a net profit of BD12.347 million and a Gross Operating Revenue of BD26.055 million for the third quarter of 2016. This is after consolidating the results of (Bahrain Tourism Company) BTC to GHG, including one time provisional bargain profit of BD4.967 million, Chairman, Farouk Y Almoayyed said. 

For the standalone results for the nine month ended September 30, GHG achieved a total Gross Operating Revenue of BD24.332 million compared to BD24.553 million in same period 2015, a decrease of BD220,920 or 0.90pc and has generated a net profit of BD7.146 million in comparison with BD7.788 million achieved in the same period 2015; a decrease of BD641,851 or 8.24pc on 2015, he added.

For the three months period ended September 30, the Group standalone achieved a Gross Operating Revenue of BD8.229 million compared to BD7.442 million in same period 2015, an increase of BD786,526 or 10.57pc. 

It has generated a net profit of BD2.332 million in comparison with BD1.778 million achieved in the same period 2015; an increase of BD553,985 or 31.16pc on same period 2015. 

He stated that although the third quarter looks better in comparison the difficult trading environment will continue in 2016 along with recent changes in the service charge and increases in utility costs.

Almoayyed also commented about the major future projects. One of the projects is the development of the 224-room, five-star Gulf Hotel Business Bay in Dubai. This waterfront property, located 1.5 km from Burj Khalifa and Dubai Mall, for which construction is expected to commence by 2016 end and anticipated to be completed by 2018 end. 

Another one is the completion of deal of share swap 100pc of the Shares BTC. This deal would enhance the development of Tourism and Hospitality sector, especially to serve our customers with the largest number of rooms and conference halls at the same time benefiting from synergising operational expenses and maximising savings in all areas.

Almoayyed thanked CEO and Director Aqeel Raees, and executive management for continuously upholding an excellent standard of service, while diversifying the Group’s activities.

Adding to Almoayyed’s sentiments, Raees expressed his satisfaction with the results taking into consideration the testing market conditions. 

In other projects, the Group entered into the stand-alone restaurant market by acquiring Block 338 in Adliya Tourism Zone for developing it into a multi-unit restaurant and leisure facility. 

The construction of a new spa is complete while the construction of 108 unit Gulf Executive Residence Juffair has commenced and is expected to be completed in late 2017.

On the operated properties, he said the development of the Gulf Residence Amwaj in conjunction with Lona Real Estate was completed and it started its operations since mid-May 2016 and getting positive feedbacks.