MANAMA: Gulf Hotels Group (GHG) has reported increases in its nine-month financial results for the current year including the financial results of third quarter.
During the third quarter, the company achieved revenue of BD9.295 million compared with BD8.225m in the third quarter of last year, achieving an increase of BD1.07m, or 13 per cent.
Gross operating profit was BD2.841m, compared with BD2.922m in the third quarter of last year, a decrease of BD81,000 or 2.78pc.
Total comprehensive income was BD1.732m, compared with BD1.201m in the third quarter of last year, with an increase of 44.31pc.
Net profit during the third quarter was BD1.428m compared with BD1.117m during the third quarter of the previous year, with an increase of 27.76pc.
The earnings per share achieved during the third quarter were 6 fils compared with 5 fils in the third quarter of last year.
An increase in the net profit for third quarter in comparison with last year resulted from significantly reduced costs as the pre-opening costs for the Gulf Court Hotel Business Bay Dubai, which opened in August 2018, were written down in Q3 2018.
These savings were offset by higher interest charges.
For the first nine months of the year (YTD), revenue was BD28.114m, compared with BD24.825m last year, with an increase of BD3.289m, or 13.25pc.
Gross operating profit of BD9.119m, compared with BD8.763m in last year, with an increase of BD357,000, or 4.07pc.
Total comprehensive income was BD6.306m, compared with BD6.035m in the previous year, with an increase of BD271,000, or 4.49pc.
Net profit of BD4.216m compared with BD5.739m in the previous year, with a decrease of BD1.523m, or 26.55pc.
Earnings per shares were 19 fils compared with 25 fils last year.
Total shareholders’ equity (excluding minority interests) for the year was BD113.239m compared with BD113.684m in last year, with an decrease of 0.39pc.
The total assets for the YTD reached BD134.859m compared with BD141.644m in the previous year, a decrease of 4.79pc.
The decrease in the net profit for first three quarters of the year in comparison with last year resulted from increased depreciation of BD1.991m resulting from the new Dubai property and the new Gulf Executive Residence Juffair (opened in January 2019) and other renovations projects executed during 2018.
The YTD net profit was also negatively affected by increased interest charges and the pre-opening expenses of the Gulf Executive Residence Juffair charged in Q1, but offset by lower costs as mentioned earlier.
Commenting, chairman Farouk Almoayyed said the hospitality industry in Bahrain continues to show signs of recovery which reflects in the group’s performance over last year.
However, there are many challenges in the Dubai market with a significant oversupply of rooms in the lead up to Expo 2020 which has resulted in a substantial drop in room rates, occupancy and RevPAR (Revenue per available room), he added.
Chief executive Garfield Jones said in Q4 this year, the Gulf Hotel will reopen the newly refurbished Fusion restaurant with the addition of an outdoor rooftop terrace overlooking the Manama skyline.
“The outlet has been rebranded Fusions by Tala, under the guidance of talented Bahraini chef, Tala Bashmi,” he added.
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