Gulf Hotels Group has registered a net profit of BD1.73 million ($4.5 million) during the second quarter of 2018 compared BD2.559 million ($6.7 million) during the same period last year, recording a decrease of 32.35 per cent.

The company achieved an operating profit of BD2.766 million ($7.2 million) in the second quarter compared to BD3.339 million ($8.7 million) in Q2 2017, a decline of 17.14 per cent.

With regard to revenue, the company achieved BD7.889 million ($20.7 million) during the second quarter compared to BD9.043 million ($23.7 million) in the second quarter of last year, registering a 12.76 per cent dip.

Earnings per shares during the second quarter were 8 fils compared to 11 fils in the second quarter of last year.

The decrease in the net profit for the second quarter is due to a decrease in room revenue, which is driven by lower room rates and lower occupancies.

Food and beverage income was also affected by lower occupancy levels as well as the closure of the Gulf Convention Centre and a number of outlets, which were under renovation in Q2. In addition, losses of BD306,000 ($803,830) were recorded from associates and share investments.

For year-to-date financial results, the company achieved a net profit of BD4.622 million ($12.1 million) compared to BD5.869 million ($15.4 million) in the previous year - a decrease of 21.24 per cent.

The company also achieved a year-to-date operating profit of BD5.841 million ($15.3 million) compared to BD6.871 million ($18 million) of last year, which is a decrease of 15 per cent.

Year-to-date revenue was BD16.600 million ($43.6 million) compared to BD18.386 million ($48.2 million) last year which is a 9.71 per cent drop.

Earnings per shares were 20 fils compared to 26 fils in last year.

The total shareholders’ equity (excluding minority interests) for the year was BD111.087 million ($291.8 million) as against BD104.718 million ($275 million) last year, an increase of 6.1 per cent.

The total assets for the year-t--date reached BD121.739 million ($319.7 million) compared to BD116.133 million ($305 million)in the previous year, up 4.8 per cent.

The decrease in the net profit for the year-to-date in comparison with last year relates to the decrease in room rates and drop in the occupancy as a result of an increase in room inventory and competition on the island, which also affected food and beverage income. In addition, losses from associates and share investments rose to BD433,000 ($1.1 million).

Chairman Farouk Almoayyed highlighted the current challenges facing the hospitality industry in the kingdom, which has faced declining occupancies and room rates over the last five years, together with significant increases in operating costs and he called on the government to take steps to address the problem.

Almoayyed said that despite the trading difficulties, Gulf Hotels Group will continue to expand and renovate its properties and will be opening the Gulf Executive Residence in Juffair in the third quarter of 2018.

He also announced that the group was on target with its expansion plans and would be opening the new Gulf Court Hotel Business Bay in Dubai during August as well as commencing operations in the Sri Lankan retailing sector in July.
 
Chief executive office Garfield Jones said: “Despite the challenges facing the industry, the group is committed to upgrading its properties and the team has been busy working on the second phase of the Crowne Plaza refurbishment and the renovation of the Gulf Convention Centre which will reopen at the beginning of October."

"In August we will complete refurbishment of the Al Waha Restaurant and we will launch ‘La Pergola by Perbellini’ with 2-star Michelin Chef, Giancarlo Perbellini,” he added. - TradeArabia News Service