Gulf Hotels Group, a leading hospitality chain in Bahrain, recorded a 10.75 per cent increase in its revenues during the second quarter of 2019, going up from BD7.889 million ($20.7 million) to BD8.737 million ($23 million).
Gross operating profit was BD2.724 million ($7.1 million), compared to BD2.766 million ($7.2 million) in the second quarter of 2018, a decrease of 1.54 per cent.
Net comprehensive income was BD1.581 million ($4.1 million), compared to BD1.870 million ($4.9 million) in the second quarter of last year, a decrease of 15.43 per cent.
Net profit during the second quarter was BD490,000 ($1.29 million) compared to BD1.731 million ($4.56 million) during the second quarter of the previous year, a decline of 71.69 per cent.
The earnings per shares achieved during the second quarter of the year were 2 fils ($0.005) compared to 8 fils ($0.021) in the second quarter of last year.
The decrease in the net profit for the second quarter in comparison to last year was a result of increased depreciation of BD746,000 ($1.96 million) resulting from the new Dubai property, the new Gulf Executive Residence Juffair and major projects executed during 2018. In addition, interest costs of BD240,000 ($632,244), excess share of loss from an associate of BD120,0000 ($3.1 million) and F1 movement to the first quarter all influenced Q2 results.
In year-to-date terms, the company achieved a revenue of BD18.819 million ($49.5 million), compared to BD16.600 million ($43.7 million) last year, which is an increase of 13.37 per cent.
Gross operating profit was BD6.279 million ($16.5 million), compared to BD5.841 million ($15.3 million) last year, up 7.49 per cent.
Net comprehensive income for the first six months was BD4.573 million ($12 million), compared to BD4.834 million ($12.7 million) in the previous year, a slight decline of 5.40 per cent.
Net profit for the first half was BD2.788 million ($7.3 million) compared to BD4.622 million ($12.1 million) in the previous year, a decrease of 39.67 per cent.
Earnings per shares for H1 was 12 fils ($0.03) compared to 20 fils ($0.05) in last year.
The total shareholders’ equity (excluding minority interests) for the year was BD111.506 million ($293.7 million) compared to BD113.684 million ($299.4 million) last year, down 1.92 per cent.
The total assets for the YTD reached BD134.971 million ($355.5 million) compared to BD141.644 million ($373.1 million) in the previous year, a decrease of 4.71 per cent.
The decrease in the net profit for the first half of the year in comparison to last year resulted from increased depreciation of BD1.501 million ($3.9 million) resulting from the new Dubai property, the new Gulf Executive Residence Juffair (GERJ) and other major projects executed during 2018. Additionally, the pre-opening expenses of the newly opened GERJ have been amortised and interest costs BD483,000 ($1.2 million) have also affected the half-year results.
The chairman, Farouk Almoayyed, commented that the hospitality industry in Bahrain is showing signs of stabilising and the group’s hotels have performed better than last year; however, the Dubai market is very challenging due to a huge oversupply, which has resulted in a significant drop in room rates and lower than expected occupancy.
He further added that the group has signed an MOU with Kanoo Real Estate, a division of YBA Kanoo, to develop various restaurants in Block 338. The group has also signed an MOU with Gulf Air Group Holding to develop and operate an airport transit hotel in the newly constructed airport terminal.
Adding to comments of the chairman, CEO Garfield Jones said: “A number of refurbishment projects are under execution. The Gulf Hotel is renovating its Fusion restaurant with the addition of an outdoor rooftop terrace. When completed the outlet will re-open as ‘Fusions by Tala’, under the guidance of our talented Bahraini chef, Tala Bashmi. Additionally, the hotel will also renovate the Men’s Health Club and main hotel lobby.” - TradeArabia News Service
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