Gulf Hotels Group swings to $5.57mln net profit

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Bahrain - Gulf Hotels Group (GHG) has achieved net profit of BD2.123 million during the first quarter of 2022 compared to a loss of BD207,119 in the first quarter of the previous year, with an increase of BD2.330m.

Earnings per share were 9 fils compared to a loss of 1 fils in the first quarter of last year.

Total comprehensive income was BD2.343m compared to a loss of BD157,077 for the first quarter of the previous year, with an increase of BD2.5m.

Revenue for the first quarter was BD9.343m, compared to BD5.198m for the same period last year, with an increase of 79.74pc.

The total equity (excluding minority interests) for the year was BD99.651m compared to BD101.829m last year, with a decrease of 2.14pc.

The total assets for the YTD were BD115.095m compared to BD113.446m in the previous year, with an increase of 1.45pc.

The increase in the net operating profit is due to an increase in operational revenue BD3.605m due to various restrictions removal to combat the spread of Covid-19 that have had an impact on the hospitality industry and an increase in profit from associates by BD415,000 and a dividend income of BD61,000 and increase in rental income by BD64,000.

On the other hand, the first quarter saw an increase of BD1.815m in expenses proportionately to revenues generated.

The chairman Farouk Almoayyed expressed gratitude for the government’s proactive facilitation to reducing restrictions, following the efficient handling of the pandemic crisis that led to a drastic decrease in the number of cases as well as limiting the transmission of the virus, while maintaining best practices and initiatives in vaccination as well as campaigning awareness.

“Its heartening to note how life has returned to normal, with business moving once again.

“The F1 event brought up excellent benefits for the kingdom; in particular, hotels and restaurants.”

He further reiterated that post-recovery, the company’s result has positively progressed, thanks to tremendous efforts of the board and the group’s management in continuously reducing costs while boosting revenue, as reflected in both the EBIDTA and the net profit.

“I am also proud to announce that Gulf Hotels Group had become the first local hospitality group to operate in Europe, with the launch of a hotel management operation in Tbilisi, which we consider as a threshold to accessing the European market by managing an outstanding resort and aqua park under the brand name of Gulf Aquamarine Hotel,” Mr Almoayyed added.

Adding to the comments, chief executive Garfield Jones said, “The 4-star Gulf Aquamarine Hotel offers 218 apartment-style bedrooms, a Lebanese restaurant, and an all-day-dining outlet, and is situated in a beautiful location on the outskirts of Tbilisi. We expect that the hotel, along with the adjacent water park and wellness centre, will become a popular destination for Bahrainis as Tbilisi is serviced by Gulf Air and the direct flight is only 3 hours.”