Gulf Hotels Group, a leading hospitality chain in Bahrain, recorded a 15.74 per cent increase in its revenues during the first quarter of 2019, going up from BD8.711 million ($22.9 million) to BD10.082 million ($26.6 million) in the first three months.
Gross operating profit was BD3.555 million ($9.3 million), compared to BD3.074 million ($8.1 million) in the first quarter of 2018, an increase of BD 481,000 or 15.65 per cent.
Net profit during the quarter was BD2.299 million ($5.8 million), compared to BD2.892 million ($7.6 million) in the first quarter 2018, a decrease of BD593,000 ($1.5 million) or 20.51 per cent.
Earnings per share was 10 fils ($0.02) in the first quarter of 2019 compared to 13 fils ($0.03) in the first quarter last year.
The decrease in the net profit for first quarter in comparison to last year resulted from increased depreciation (BD400,000/ $1.05 million) from the new Dubai property and major projects executed in 2018, together with pre-opening expenses of the newly opened Gulf Executive Residence Juffair (BD134,000/ $353,751) which opened in January 2019 and interest costs (BD243,000/ $641,503), which are offset by better revenues which helped to reduce the overall shortfall.
The chairman, Farouk Almoayyed, stated that the group is now focusing on enhancing the hotel operations in Dubai, beverage operations in Sri Lanka and Gulf Executive Residence Juffair in Bahrain, in addition to the existing properties.
CEO Garfield Jones stated that the overall Q1 business in the kingdom was supported by the Formula 1 event, boosting hotel occupancies and directly benefitting the Gulf Hotel, which carries out catering activities at Bahrain International Circuit.
He further added that steps are also underway to further expand operations in Saudi Arabia during 2019. This year also represents the 50th anniversary of the Gulf Hotel which will enjoy a year full of celebratory events." - TradeArabia News Service