OREANDA-NEWS. Gulf Hotels Group has reported the financial results for 2015, announcing a net profit of BD 9.197 million for the year. The Group also operates The K Hotel, Asdal Gulf Inn in Bahrain and the Ocean Paradise Resort (Zanzibar) and will open the Gulf Residence Amwaj in the middle of 2016. 

Chairman, Farouk Y. Almoayyed, stated that 2015 has been a very challenging year where the Group has managed to achieve a total Gross Operating Revenue of BD 32.370 million compared to BD 33.311 million in 2014, a decrease of 2.82 % for the year. Total Gross Operating Revenue amounted to BD 7.817 million for the last quarter 2015 against BD 8.777 million in 2014; a decrease of 10.94%.He continued that overall business level in Bahrain with competition levels extremely challenging can be seen in the results where the major impact was on the hospitality industry.

Mr. Almoayyed also announced that the Group has achieved a net profit of BD 9.197 million, a decrease of BD 2.080 million or 18.44% on 2014. The net profit for the last quarter 2015 was BD 1.409 million against BD 1.811 million in 2014, a decrease of 22.19% influenced by year end provisions. Mr. Almoayyed expressed his appreciation for the efforts of all company divisions and all the staff for their efforts in achieving these results in a challenging environment.

Mr. Almoayyed added that based on the results, the Board of Directors have recommended during the Board Meeting held on February 17, 2016 a cash dividend of 30% or 30 fils per share on the paid up capital for the approval of the shareholders.

Mr. Almoayyed expressed his thanks to Chief Executive Officer and Director, Mr. Aqeel Raees, and executive management for continuously upholding an excellent standard of service, while diversifying the Group’s activities.

Mr. Almoayyed stated that the previously announced intention by the Group to make a voluntary conditional offer for a share swap of 100% of Bahrain Tourism Company B.S.C.; we are currently at an advanced stage towards completing the preparation of this offer in line with the Central Bank’s Takeovers, Mergers and Acquisitions module.

Mr. Almoayyed confirmed that the company has commenced the development of the 230 rooms, five star Gulf Hotel Business Bay in Dubai, a waterfront property located 1.5km from Burj Khalifa and Dubai Mall, which is now in design stage with construction expected to commence late -2016 and be completed late-2018.

CEO & Director Mr. Aqeel Raees added to Mr. Almoayyed’s comments and expressed his satisfaction with the results taking into consideration these testing market conditions. On the expansion of the Group into the stand-alone restaurant market, he further added that the company has acquired Block 338 in Adliya Tourism Zone and is developing plans for a multi-unit restaurant and leisure facility. Construction is expected to commence in the 1st half of 2016.

He further stated that the development of the Gulf Residence Amwaj in conjunction with Lona Real Estate is nearing completion and the 173 unit; four star apartmenthotels will open in the 1st half of 2016.

He continued stating that the construction of the new Spa is underway with completion scheduled in first half of 2016. GHG is currently developing a 108 unit serviced apartment facility in Juffair, with construction expected to commence by the end of quarter one of 2016 and take 18 months to complete.

Mr. Raees concluded by expressing his appreciation towards the management and staff of all of the Group’s divisions whose hard work and efforts have contributed towards achieving these positive results in difficult times. He also stated that the success of any company comes down to its customer base, thanking the Groups valued customers for their continuous support.