Abu Dhabi National Hotel (ADNH) was established in 1976 and has since played an instrumental role in raising the profile of Abu Dhabi and the UAE as a global tourism hub. Over the years, ADNH has grown into a full-fledged hospitality group, delivering an extensive array of services that span hotels, restaurants, destination management, catering and transportation.

It began its expansion in 1991 with the signing of its first hotel management contract. Today the company oversees operations and commercial functions for more than a dozen hotels in Abu Dhabi, Dubai and Ajman. Through its hotels division, ADNH plays a multifaceted role owning, operating, managing and acting as franchise manager for a wide-ranging portfolio of properties.

Owned assets include some of the UAE’s most iconic and prestigious hotels, such as The Ritz-Carlton Abu Dhabi Grand Canal, Park Hyatt Abu Dhabi Hotel and Villas, and Sheraton Abu Dhabi Hotel & Resort.

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Complementing its owned and managed assets, ADNH has a strong operator division that manages a select portfolio of hotels and hotel apartments, including the Radisson Blu Hotel Ajman, in key urban locations. Outside the traditional hospitality sphere, ADNH’s diversified business interests encompass several complementary sectors. These include ADNH Catering, Em Sherif Restaurants, High Spirits stores, Al Ghazal Transport, Sunshine Travel & Tours, National Facility Management Company by ADNH, M Five Services, and Abu Dhabi National General Security Guard Co. LLC.

Successful IPO of catering division
In October 2024, the company floated ADNH Catering Plc, a leading food and support services provider operating in the UAE.

ADNH Catering raised AED864 million (U.S.$235 million) from the sale of 900 million offer shares, representing 40% of ADNH Catering’s total issued share capital. The offering attracted strong demand from both international and regional investors, being oversubscribed more than 15 times and attracting more than AED13 billion (U.S.$3.5 billion) in demand. With the final offer price (AED0.96/U.S. 0.26 per share) set at the top of the announced price range, the listing reinforced ADNH Catering’s position as an established market leader in food and support services, catering to critical sectors including healthcare, education, defense and business and industry across the region.

The successful listing reflects the company’s strong market position, built on its established operations across key sectors in the UAE and Saudi Arabia. ADNH Catering operated around 160 on-site kitchens and delivered 11 million meals per month serving 262 clients in the year ended 30 September 2023. Its presence in Saudi Arabia is set to expand further, with planned growth in Riyadh, Jeddah and the eastern region.

The listing of the catering division came after ADNH bought out Compass Group International’s 50% stake in their UAE joint venture. The buyout is expected to bring in an additional net profit gain of nearly AED100 million (U.S.$27 million) for ADNH.

Strategic growth drivers
The UAE’s tourism sector is poised for its next wave of growth. The UAE Tourism Strategy 2031, launched as part of the landmark Projects of the 50, is one of the country’s most ambitious national initiatives. The strategy outlines 25 key initiatives and policies aimed at transforming the UAE into one of the world’s leading travel destinations, with ambitious targets, including increasing the tourism sector’s GDP contribution to AED450 billion (U.S.$123 billion) with an annual growth of AED27 billion (U.S.$7.4 billion), attracting AED100 billion (U.S.$27 billion) in additional tourism investments and welcoming 40 million hotel guests. These initiatives will boost the UAE’s global competitiveness and ensure long-term, sustainable growth for its tourism industry.

Investment outlook
ADNH is in a strong position to take advantage of the UAE’s growing tourism market and the support the tourism sector receives from the governments of both Abu Dhabi and Dubai. The focus of the two flagship airlines on boosting their networks and expanding their offerings, as well as efforts to attract global commercial, economic, sporting and leisure events, and world-class infrastructure including several new landmarks such as the newly announced Disney Abu Dhabi, has made the UAE one of the world’s most well-known tourism destinations.

Strategic growth through targeted acquisitions
The company has been eyeing strategic acquisitions. In addition to purchasing Compass Group International’s 50% stakes in their JV companies, the company has expressed an interest in exploring acquisitions of strategic and opportunistic resort-based developments across high performing micro-markets.

ESG leadership and community impact
The company has put in place strong environmental, social and governance (ESG) measures. Seven out of 11 projects in its hotels have already begun and are on schedule, while average greenhouse gas emission intensity per economic unit decreased by 40%. The Al Ghazi Taxi fleet now includes 147 electric vehicles. The company also reported 100% compliance with all labour laws and non-discrimination policies, and 100% adherence to codes of conduct in business practices. ADNH has also expressed a commitment to adopting long-term strategies aimed at mitigating greenhouse gas emissions, in line with government policy.

Hospitality market outlook

As the F&B sector in the UAE and the region continues to expand due to evolving demographics and a thriving business community, ADNH Catering is well-placed to meet the rising demand and fulfil their growth strategies. This is boosted by several new landmark projects such as Yas Island tourism attractions, as well as museums and world-class retail offerings.

Conclusion

ADNH’s diversified portfolio and strategic initiatives position it to benefit from the UAE’s expanding tourism and hospitality sectors. The successful IPO of its catering division highlights investor confidence and operational strength. Against the backdrop of national tourism strategies, ADNH remains well-positioned to support and capitalise on sector-wide growth, making it a stock to watch.

To find out more, visit the company’s page on adx.ae.

To invest, contact one of the ADX brokers now.