MANAMA: Gulf Hotels Group (GHG) has reported a total gross operating revenue of BD8.711 million for the first quarter of 2018, a decrease of 6.76 per cent, when compared with BD9.343m in same period of 2017.
In a statement, chairman Farouk Almoayyed said the quarter was challenging as trading conditions continued their downward trend in both hospitality and retailing sectors.
Mr Almoayyed also announced that the company has generated a net profit of BD2.892m, a decrease of 12.66pc from BD3.311m achieved in the same period of 2017.
The drop in Revenue per Available Room (REVPAR) experienced by hotels in the kingdom over the past four years continued into 2018, due to further erosion of room rates, which has an immediate effect on the bottom line, he said.
He also commented on changes in duty rates and pricing structures which have had a negative impact on the retailing sector in the first quarter, although in the long term this is expected to have a beneficial effect on the both the retailing and hospitality sectors.
First-quarter results were also affected by reduced profit from associates due to impairment losses.
“Despite the challenges facing the hospitality sector, we are continuing to enhance our operations,” said chief executive Garfield Jones.
The Gulf Hotel won the contract for catering services at the Bahrain International Circuit for a two-year period and the hotel will spend this summer upgrading a number of its facilities, including the Sherlock Holmes, the Gulf Convention Centre and the Al Waha, La Pergola and Fusions Restaurants, added Mr Jones.
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