Mon, 31 July 2017
Gulf Hotels Group (GHG) has reported its financial results for the second quarter of 2017 with Chairman, Farouk Y Almoayyed, announcing a gross operating revenue of BD18.386 million compared to BD16.382 million in the same period in 2016, an increase of 12.23 per cent. For the second quarter, the group achieved a gross operating revenue of BD9.043 million compared to BD7.804 million in same period last year.
The group generated a half-yearly net profit of BD5.869 million up 30.81 per cent on last year. For the second quarter of 2017 it achieved a net profit of BD2.559 million in comparison with BD1.750 million in 2016. However, the published profit for the half year and part of last year includes a one-time ‘Bargain Profit’ of BD6.126 million associated with the acquisition of Bahrain Tourism Company.
Commenting on the extremely challenging trading conditions in the sector, given the number of new hotels which have created ‘a huge over supply of bedrooms at a time of inconsistent demand’, Mr Almoayyed called on the authorities to take action in support of the hospitality sector. He added that though the group will continue to grow in Bahrain, it will also concentrate on external target markets such as the UAE and Saudi Arabia.
The group’s CEO, Garfield Jones, expressed his satisfaction with the results, taking into consideration challenging market conditions, adding that refurbishment at the group’s Crowne Plaza hotel is expected to be completed by the end of the year and the 109-unit Gulf Executive Residence Juffair is expected to open for business by mid-2018.