Gulf Hotels Group announces financial results
The Gulf Hotels Group (GHG) yesterday reported a 46.7 per cent increase in its fourth-quarter net profit to BD 1.734 million from BD 1.182 m in the year-ago quarter. GHG said the increase in the net profit mainly relates to an increase in income “but is also due to preopening expenses at the Gulf Convention Centre earlier booked in 2018.”
Earnings per share was 7 fils compared to 6 fils in the fourth quarter of last year. GHG board also recommended a 25pc cash dividend to shareholders. Quarterly results Fourth-quarter total comprehensive income was BD 1.764K, compared to BD 1.397K in the fourth quarter of last year, with an increase of 26pc.
Gross profit from hotel operations achieved was BD 8,071 m, compared to BD 6,285 m in the fourth quarter of last year, with an increase of 28.4pc. In regards to revenue, the company achieved BD 10.455 m, compared to BD 10.286 m in the fourth quarter of last year, with an increase of 1.6pc. Full-year results Full-year net profit was BD 5.950 m compared to BD 6.922 m in the previous year, a decrease of 14pc. Earnings per share was 26 fils compared to 31 fils in last year.
Total comprehensive income was BD 8.070 m, compared to BD 7.432 m in the previous year, with an increase of 8.6pc. The total assets for the YTD reached BD 136.727 m compared to BD 141.645 m in the previous year, with a decrease of 3.5 pc. Gross profit from hotel operations achieved in the year is BD 17.191 m, compared to BD 15.048 m last year, with an increase of 14.24pc.
The company achieved revenue of BD 38.570 m, compared to BD 35.111 m last year, an increase of 9.9pc. The Group total revenue had increased by BD 4.459M compared to the previous year. Net profit resulted from a full year of operation of Gulf Court Hotel Business Bay Dubai in 2019 compared to only 5 months in 2018.
There was a decrease in profits from associates and share investments down to BD 160K. Commenting, Chairman, Farouk Almoayyed, said that the newly added business with initial years’ load, had affected the Group bottom line; nevertheless, those businesses will mature and make a positive contribution in the future.
Almoayyed shed the light on numerous challenges impacting the hospitality industry in Bahrain and the region, which continues to face declining room rates from an oversupply of rooms. CEO Garfield Jones added that a JV ( joint venture) was signed with Gulf Air Group to develop and manage the Bahrain Airport Hotel. Which has 84 rooms and Chairman, Farouk Almoayyed scheduled to open in 2020.