GHG announces BD 11.036 million net profit for 2017

0

Gulf Hotels Group (GHG) announced financial results for the year ended 31st December 2017 reporting a total Gross Operating Revenue of BD37.261 million compared to BD36.376m in same period 2016, an increase of BD884,543 or 2.43 per cent. The Group generated a Net Profit of BD11.036m in comparison with BD10.007m achieved in the same period 2016 (before the one-time bargain profit of BD 6.126m), an increase BD1.029m or 10.28pc. This was announced by Chairman, Farouk Yousuf Almoayyed during the group’s forty eighth Annual General Meeting held yesterday in Awal Ballroom 3 at The Gulf Hotel.

 Almoayyed highlighted the challenges facing the hospitality industry which has experienced declining occupancies and room rates over the past 4 years. Recently published figures by market analysts, STR, indicate a drop in Revenue per Available Room (REVPAR) of 11.8pc across the hotel industry in Bahrain during 2017, with both occupancy percentages and average room rates declining during the year.

 He stated that profitability is further affected by significant increases in costs such as utilities, although he welcomed recent changes in duties that will help the restaurant business but cautioned that the positive impact of change in duties could be wiped out once VAT is introduced.

 Almoayyed added that Gulf Hotels Group would continue to expand and renovate its properties, opening the Gulf Executive Residence in Juffair in Quarter 3 of 2018 as well as branching out into the Dubai hotel market and the Sri Lankan retailing sector.

 Adding to comments of the Chairman, CEO Garfield Jones stated, “Overall the Group has performed well in 2017 although the declining trend in the hospitality sector is a real concern. The Group is in the process of completing a major bedroom renovation in its Crowne Plaza property and during 2018, would be undertaking a complete renovation of the Gulf Convention Centre as well as upgrading the Gulf Hotel’s Al Waha, La Pergola, Sherlock Holmes and Fusions outlets. The La Pergola project is particularly exciting as it will be reopened under the guidance of 2 star Michelin chef, Giancarlo Perbellini. He also said that the Fusions Restaurant, which will have the addition of an outdoor terrace, will be reopened under the guidance of the Gulf Hotel’s Bahraini chef, Tala Bashmi and will be renamed “Fusions by Tala”.

 Gulf Hotel Group (GHG) owns the Gulf Hotel, the Crowne Plaza Hotel (via its subsidiary Bahrain Tourism Company SPC), and Gulf Brands International and operates The K Hotel, Asdal Gulf Inn and the Ocean Paradise Resort in Zanzibar (part owned).

 Newsofbahrain ®

The post GHG announces BD 11.036 million net profit for 2017 appeared first on bizbahrain.

SOURCE: BIZBAHRAIN

LEAVE A REPLY

Please enter your comment!
Please enter your name here