Gulf Hotels Group (GHG) yesterday announced its financial results for the second quarter and first six months of the year ended June 30, 2026.
For the second quarter of 2026 (Q2), net profit was BD1.66 million compared to a net profit of BD2.77m for the second quarter 2025, with a decrease of BD1.11m representing 40 per cent.
Earnings per share were 7 fils compared to 12 fils in the second quarter of last year.
Total comprehensive income was BD1.97m compared to BD2.56m for the second quarter of the previous year, with a decrease of BD0.59m representing 23pc.
Revenue for Q2 was BD5.98m, with a decrease of BD4.1m representing 41pc when compared to BD10.08m for Q2-2025.
For the first six months of 2026 (H1), the company achieved net profit of BD2.81m compared to a net profit of BD5.22m in the six months of the previous year, with a decrease of BD2.41m representing 46pc.
This decline was primarily driven by the regional geopolitical tensions experienced during the period, which adversely impacted air connectivity, travel activity, and the broader tourism sector across Bahrain and the wider region.
The earnings per share were 12 fils compared to 23 fils in H1-2025.
Total comprehensive income of BD3.05m for H1-2026 compared to BD5.1m for H1-2025, saw a decrease of BD2.05m representing 40pc.
Revenue of BD12.81m for H1-2026 when compared to BD18.69m for H1-2025, saw a decrease of BD5.88m representing 31pc.
The total equity (excluding minority interests) for H1-2026 was BD107.65m compared to BD110.25m for 2025, with a decrease of BD2.6m representing 2.4pc.
The total assets for the YTD reached BD112.56m compared to BD116.98m for 2025, with a decrease of BD4.42m representing 3.8pc.
GHG chairman Fawzi Kanoo commented: “As the region navigates a period of heightened geopolitical uncertainty, Bahrain has demonstrated exceptional resilience under the wise leadership of His Majesty King Hamad and the sustained efforts of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, in preserving the kingdom’s stability, advancing its economic development, and reinforcing Bahrain’s position as an attractive investment destination. We remain confident in Bahrain’s long-term economic prospects and in the strength of its hospitality sector, which continues to benefit from government support aimed at fostering the growth of the industry.”
Mr Kanoo added: “Despite the challenging market environment, I am pleased to report that the group achieved a net profit of BD2.81m for the first half of 2026. Sustaining profitability under these conditions reflects the strength of our operational discipline, the resilience of our diversified portfolio, and the effectiveness of our strategic approach.
“Looking ahead, we remain confident in the group’s long-term prospects and in its ability to grow through continued operational excellence, the pursuit of new opportunities, prudent capital allocation, and the further strengthening of Gulf Hotels Group’s position as a leading hospitality company. We remain dedicated to delivering sustainable, long-term value to our shareholders and stakeholders alike.”
GHG chief executive officer Ahmed Janahi added: “The first half of 2026, and the second quarter in particular, was characterized by an exceptionally challenging operating environment for Bahrain’s hospitality sector. Elevated regional geopolitical tensions had a significant adverse impact on air connectivity, traveller confidence, business activity, and tourism demand across Bahrain and the wider region. The postponement of the Formula One Gulf Air Bahrain Grand Prix 2026 meant that one of the kingdom’s most important annual demand drivers was absent during the quarter, placing additional pressure on both the market and the group’s performance.
Mr Janahi
“Compared with the first half of 2025, the market occupancy rate declined by approximately 36pc from 57.3pc in H1 2025 to 36.8pc in H1 2026, while revenue per available room (RevPAR) decreased by approximately 43pc, highlighting the extraordinary scale and broad-based nature of the disruption experienced throughout the period. Our response was timely, disciplined, and strategically aligned with these prevailing market conditions. We implemented prudent cost and operational measures to reflect demand dynamics, safeguarding profitability, preserving liquidity, and ensuring the continued resilience and continuity of our operations.”
He concluded: “Supported by a strong balance sheet, a diversified asset base, and a disciplined growth strategy, Gulf Hotels Group remains well-positioned to successfully navigate the current operating environment and deliver sustainable long-term value to its shareholders and stakeholders.”
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