Gulf Hotels Group Reports First-Half Profit

Gulf Hotels Group remained profitable during the first half of 2026 despite regional tensions, weaker travel demand and the postponement of the Bahrain Grand Prix.

Gulf Hotels Group B.S.C. has announced its financial results for the second quarter and first six months of 2026, reporting continued profitability despite a challenging operating environment for Bahrain’s hospitality sector.

For the second quarter, the Group recorded a net profit of BD1.66 million, compared with BD2.77 million during the corresponding period in 2025. This represented a decrease of BD1.11 million, or 40 per cent.

Earnings per share stood at seven fils, compared with 12 fils during the second quarter of the previous year.

Total comprehensive income reached BD1.97 million, down 23 per cent from BD2.56 million during the same period last year. Second-quarter revenue was BD5.98 million, compared with BD10.08 million in 2025, representing a decline of BD4.1 million, or 41 per cent.

First-Half Performance

For the six months ending June 30, 2026, Gulf Hotels Group recorded a net profit of BD2.81 million, compared with BD5.22 million during the first half of 2025. The BD2.41 million decline represented a decrease of 46 per cent.

The Group attributed the reduction primarily to regional geopolitical tensions, which affected air connectivity, travel activity and the wider tourism sector across Bahrain and the region.

Earnings per share were 12 fils, compared with 23 fils during the corresponding period last year. Total comprehensive income declined by 40 per cent to BD3.05 million, from BD5.1 million in the first half of 2025.

Revenue for the period reached BD12.81 million, compared with BD18.69 million during the same period last year, representing a decline of BD5.88 million, or 31 per cent.

Total equity, excluding minority interests, stood at BD107.65 million at the end of June, compared with BD110.25 million at the end of December 2025. Total assets reached BD112.56 million, compared with BD116.98 million at the end of the previous financial year.

Confidence in Bahrain

Gulf Hotels Group Chairman Fawzi Kanoo highlighted Bahrain’s resilience during a period of heightened regional uncertainty.

Mr. Kanoo says: “The Kingdom of Bahrain has demonstrated exceptional resilience under the wise leadership of His Majesty King Hamad bin Isa Al Khalifa and the sustained efforts of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister.”

He added that the Group remained confident in Bahrain’s long-term economic prospects and the strength of its hospitality sector, supported by government initiatives designed to encourage the industry’s continued development.

Addressing the Group’s performance, Mr. Kanoo says: “Despite the challenging market environment, I am pleased to report that the Group achieved a net profit of BD2.81 million for the first half of 2026.”

He said maintaining profitability reflected the Group’s operational discipline, diversified portfolio and strategic approach. Gulf Hotels Group remains focused on pursuing new opportunities, allocating capital prudently and strengthening its position as a leading hospitality company.

Challenging Market Conditions

Gulf Hotels Group Chief Executive Officer Ahmed Janahi described the first half of 2026, particularly the second quarter, as an exceptionally challenging period for Bahrain’s hospitality industry.

Mr. Janahi said regional geopolitical tensions had affected air connectivity, traveller confidence, business activity and tourism demand. The postponement of the Bahrain Grand Prix also removed one of the Kingdom’s most important annual demand drivers during the quarter.

Market occupancy fell from 57.3 per cent during the first half of 2025 to 36.8 per cent during the same period in 2026, while revenue per available room declined by approximately 43 per cent.

Mr. Janahi says: “Our response was timely, disciplined and strategically aligned with the prevailing market conditions.”

The Group introduced prudent cost and operational measures in response to demand levels, helping to preserve liquidity, protect profitability and maintain the resilience of its operations.

Expansion Plans Continue

Despite the difficult short-term environment, Gulf Hotels Group continued to implement its strategy for 2026 to 2030, which focuses on expanding its asset-light business model and third-party hotel management platform across the GCC, Africa and the Indian Ocean region.

During the period, the Group signed a Memorandum of Understanding with Maldivian partner Keiretsu Pvt Ltd for the development of a luxury island resort in the Maldives. The project represents Gulf Hotels Group’s first investment in the Indian Ocean hospitality market.

The Group is also progressing with hotel management opportunities in Saudi Arabia and East Africa, with further announcements expected during the second half of 2026.

Expansion continued across its restaurant and catering operations. Takht Jamsheed opened at Marassi Galleria, while preparations advanced for a forthcoming location at Bayfront in Al Khobar.

Gulf Catering Company also secured new contracts within Bahrain’s education sector through partnerships with the Royal College of Surgeons in Ireland, Medical University of Bahrain, the American University of Bahrain and the Royal University for Women.

Mr. Janahi said the Group’s long-term strategic priorities remained unchanged despite the pace of recovery being influenced by regional developments, traveller confidence and the gradual restoration of international connectivity.

Supported by a strong balance sheet, diversified assets and a disciplined growth strategy, Gulf Hotels Group remains focused on navigating current market conditions while pursuing opportunities that strengthen and diversify its portfolio.

Tags #bahrain hospitality sector #bahrain business news #gulf hotels group expansion #bahrain hotel industry #gulf hotels financial results #bahrain tourism news #bahrain hotel profits #Bahrain hospitality industry #gulf hotels group bahrain