Tuesday, Sep 26, 2006
DUBAI (Zawya Dow Jones)--The Movenpick Hotel & Resort Beirut reported a revenue per available room of $121 in July and $94 in August, despite the recent outbreak of hostilities in Lebanon.
"While the overall Beirut hotel market has been severely hit since the outbreak of hostilities, Movenpick was the only hotel in the country to report profits during that period," Sarmad Zok, chief executive of Kingdom Hotel Investments, which owns 81.2% of the hotel, told Zawya Dow Jones during a conference call Tuesday.
With the outbreak of war, KHI said it implemented a profit protection plan to secure the property and minimize expenses.
"We were extremely focused and rapid in reacting," Zok said, adding that the hotel secured key contracts with the U.N. and the media to establish itself as a hub for diplomatic and media activity for the duration of the crisis.
With regards to occupancy rate, Zok said that the hotel recorded an average of 80% during the war period, while most hotels in the country could only achieve 15%.
The hotel's RevPAR will be reflected in KHI's revenues and profits in the second half.
The Cairo hotel market, according to Zok, benefited from the crisis in Lebanon due to the partial shift in demand from Beirut to Cairo.
Regarding KHI's second development in Beirut, the Four Seasons Hotel, Zok said that the hotel has witnessed a one year delay in construction and is now expected to be completed in the second quarter of 2008.
"The delay is due to labor shortages and procurement of materials," Zok said, confirming that there won't be changes in the investment budget or any additional costs due to the war.
On a different note, KHI said its net profit for the first half soared to $27.9 million, compared with $7.3 million a year earlier. By Mirna Sleiman, Dow Jones Newswires, 00971 4 2235676, mirna.sleiman@dowjones.com
(END) Dow Jones Newswires
09-26-06 0530ET
Copyright Zawya Dow Jones Newswires 2006
