GHG reports net profit of BD16.133m
Manama : Gulf Hotels Group (GHG) has reported 2016 financial results, announcing a consolidated net profit of BD16.133 million for the year.
The Board of Directors has recommended a cash dividend of 25pc or 25 fills per share on the paid up capital for the approval of the shareholders and 10pc bonus shares (one for every 10 shares).
The Group owns Gulf Hotel and recently acquired Bahrain Tourism Company (BTC) and operates The K Hotel, Asdal Gulf Inn, The Ocean Paradise Resort (Zanzibar)(part owned) and Gulf Residence Amwaj.
Chairman, Farouk Y Almoayyed stated that year 2016 was very challenging with more hotels opening on the island.
The group has managed to achieve Gross Operating Revenue of BD36.377m and a Net Profit of BD16.133m after consolidating the results of BTC with GHG, including one time provisional bargain profit of BD6.126m.
For the standalone results (excluding BTC) for the year ended 31st December 2016, GHG achieved a total Gross Operating Revenue of BD33.134m (Published figure of BD36.377m less BD3.243m BTC Gross Operating Revenue from June to December 2016) compared to BD32.370m in same period 2015, an increase of BD763,512 or 2.36 per cent. Net Profit was BD9.134m (Published figure of BD16.133m less BD873,231 BTC Profit from June to December 2016 & BD6.126m one-time Bargain Profit) in comparison with BD9.197m achieved in the same period 2015, a decrease of BD63,281 or 0.69 per cent on 2015.
For the three months period from October to December 2016, the group has achieved Gross Operating Revenue of BD10.322m and a Net Profit of BD3.785m after consolidating the results of (Bahrain Tourism Company) BTC with GHG, including bargain profit of BD1.159m.
For standalone results (Excluding BTC) for the three months period from October to December 2016, GHG achieved a total Gross Operating Revenue of BD8.802m compared to BD7.817m in same period 2015, an increase of BD984,432 or 12.59pc and has generated a Net Profit of BD1.988m in comparison with BD1.409m achieved in the same period 2015, an increase of BD578,571 or 41.05pc on 2015.
Expansion strategy
On the group’s expansion strategy, Almoayyed said the group mulls expanding the existing hotel portfolio and establishing a number of stand-alone restaurants.
He confirmed that the company has commenced the development of the 230 rooms, five star Gulf Hotel Business Bay in Dubai, and waterfront property located 1.5km from Burj Khalifa and Dubai Mall, and expected to be completed end 2019.
CEO Garfield Jones said the group plans to enter into the stand-alone restaurant market in both Bahrain and KSA, having already acquired Block 338 in Adliya Tourism Zone for developing it into a multi-unit restaurant and leisure facility, and pursuing Joint Venture proposals for opportunities in Saudi Arabia.
The construction of 108 unit Gulf Executive Residence Juffair is well underway and expected to be completed by Q1 2018.
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