Bahrain-based National Hotels Company's flagship the Diplomat Radisson Blu Hotel, Residence and Spa has seen a 30 per cent improvement in occupancy during the first quarter of the year, a top company official has said.

National Hotels Company (NHC) chief executive Abdulrahman Morshed told the Gulf Daily News (GDN), our sister publication, that there has been an improvement in the country's tourism and hospitality industry and with the 2015 Formula One Gulf Air Bahrain Grand Prix fast approaching, the best time for the hotel was yet to come.

Morshed was talking on the sidelines of the company's annual general meeting (AGM) held the hotel yesterday.

The chief executive was confident that the hotel would continue to see double-digit growth during the current year.

The company has reported a 20 per cent year-on-year rise in net profit for last year.

NHC chairman Faisal Al Zayani said Carlson Rezidor Hotel Group, the owner of the Radisson Blu brand, will continue to manage the Diplomat Hotel for 15 years starting January 1 next year, following the extension of an agreement.

Al Zayani said that the Diplomat Commercial Office Tower, a twin tower office building and car park, adjacent to the hotel has achieved occupancy of nearly 50 per cent making it a significant contributor to company revenues.

The company had invested BD25.7 million ($67.6 million) in the project and an additional BD800,000 was spent on upgrading the facade of the hotel to match the design style of the new development.

A major project undertaken last year was the eight-month long renovation of its Grand Banquet Hall, entailing an investment of BD2.2 million, he said.

The company expects to recover the investment over the next three years.

The board, he said, would continue to look for investments that enrich the company's activities and create additional job opportunities, thus supporting the national economy and enhancing shareholders returns.

The AGM saw shareholder approval for cash dividend of 10 per cent of the paid-up capital or 10 fils per share.

A bonus issue of five per cent or one share of every twenty shares held has also been approved. - TradeArabia News Service