Manama: Gulf Hotels Group (GHG) yesterday reported a total gross operating revenue of BD8.578 million for the first quarter this year.
This compares with BD8.795m in the same period last year, a slight decrease of BD216,873 or 2.47 per cent.
GHG chairman Farouk Almoayyed said the difficult trading conditions will continue in 2016 along with recent changes in the service charge and government levy and increases in utility costs.
Mr Almoayyed also announced that the company generated a net profit of BD2.736m this year compared with BD3.112m achieved in the same period last year.
“The development of the 224-room, five-star Gulf Hotel Business Bay in Dubai has begun. The waterfront property, located 1.5km from Burj Khalifa and Dubai Mall, is now in design stage with construction expected to commence at the end of this year and be completed in 2018.
“The submission of an offer to the shareholders of Bahrain Tourism Company (BTC) indicates our potential interest in acquiring 100pc of BTC’s shares through a share-swap offer. The proposed acquisition is expected to result in synergies that would benefit the shareholders of GHG and BTC. The process is in an advanced stage, he added.
Mr Almoayyed thanked the executive management for continuously upholding an excellent standard of service, while diversifying the group’s activities.
Chief executive and director Aqeel Raees expressed satisfaction with the results taking into consideration the challenging market conditions.
“The group has entered into the stand-alone restaurant market by acquiring Block 338 in Adliya Tourism Zone for developing it into a multi-unit restaurant and leisure facility. Construction is expected to commence in the first half of 2016.
“Construction of a new spa is almost complete and the 108 unit Gulf Executive Residence Juffair project will be completed in late 2017.”
Mr Raees said the development of the Gulf Residence Amwaj in conjunction with Lona Real Estate is nearing completion and the 173 unit four-star apartment-hotels will open soon.