Bahrain-based Gulf Hotels Group's shareholders yesterday approved a dividend payout of 35 per cent or 35 fils per share, totalling BD5.78 million ($15.25 million), for last year.

The annual general meeting held at the Gulf Hotel, also saw approval of director's fees of BD230,000, charity reserve expenses of BD249,139 and BD10,000 towards national promotional activities, said a report in our sister publication, the Gulf Daily News.

The group achieved a net profit of BD10.106 million ($26.81 million) last year, compared with BD7.825 million in 2011, with a growth of BD2.281 million or 29.2 per cent.

Total gross operating revenue for 2012 was BD32.5 million, compared with BD28.9 million in 2011, indicating an increase of BD3.6 million or 12.4 per cent.

This translates into earnings per share of 61 fils compared with 47 fils last year.

"Whilst difficult trading conditions in the hospitality sector following the unrest in 2011 have continued, there has been a significant growth in business," chairman Farouk Almoayyed said, attributing it to the successful implementation of growth plans with tight control over expenses.

Despite unfavourable conditions, the group not only substantially improved its profit levels compared with 2011, but also achieved the highest profit levels in its history, he said.

"Major events that took place in 2012, such as the GCC Summit, and the reintroduction of the Bahrain F1 Grand Prix went some way towards helping the hotel sector recover from significant downturns experienced in 2011," he added.

"The upgrade of the hotel's HV intake is near completion, which will provide the additional power required for future expansion," chief executive Aqeel Raees said.

"The new commercial laundry is expected to be operational during the second quarter of 2013, while the planning and design phase of the new 2,500 sq m top-of-the-range spa is close to completion and construction is expected to commence in the second half of 2013 and will be completed mid-2014.

"Additionally, the management team is working on implementing the plans to develop the Amwaj Waves Hotel Apartments, which are scheduled to open towards the end of 2013," Mr Raees concluded.

Representatives from the Commerce Ministry, Central Bank of Bahrain, auditors Ernst and Young and Fakhro Karvy Computer Share were also present. – TradeArabia News Service