Gulf Hotels Group posts BD3m profit

16/04/2015 09:05 AST

Gulf Hotels Group has reported a slight decline in revenues for the first quarter this year, when compared with the same quarter last year.

Total gross operating revenue was down by BD176,721 or 1.97 per cent to BD8.795 million for the period when compared with BD8.972m for the same period last year.

It has reported a decrease of BD814,804 or 20.75pc in net profit at BD3.112m for the period when compared with BD3.927m for the same period last year.

Chairman Farouk Almoayyed said the financial results mirror the effect of slight drop in business levels, which is due to increased competition, overhead costs and reduced investment income.

However, Mr Almoayyed was hopeful that in the coming quarters the management would overcome the challenges and maintain healthy profit levels.

The group has signed hotel management agreements with two four-star hotels, one in Seef and the other in Manama, which will be running from the middle of the year.

Mr Almoayyed said these would add more strength in developing the group into an international chain.

On the expansion of the group into the stand-alone restaurant market, he said the company has acquired Block 338 in Adliya Tourism Zone and is developing plans for a multi-unit restaurant and leisure facility.

Const-ruction is expected to commence in the second half.

Chief executive and director Aqeel Raees said the refurbishment of the Gulf Hotel's Awal Ballroom will take place in the summer.

Work has already started to create a new lounge located off the hotel's Al Andalus Lounge, the fit-out of which will start soon and it will be ready to take customers by the middle of the year.

Refurbishment of Gulf Executive Residence is also scheduled to be completed by the middle of the year. In addition, the soft refurbishment of the tower block rooms will also be undertaken in the second half of the year.

The development of the Gulf Residence Amwaj in conjunction with Lona Real Estate is nearing completion and the 173-unit, four-star apartment-hotels will open in the second half.

The construction of a new spa is underway with completion scheduled in third quarter. A 108 unit serviced apartment facility in Juffair is also under development, with construction expected to commence in the second half. The project is expected to take 18 months to complete.

Gulf Daily News