Gulf Hotels Group (GHG) exploring opportunities in Saudi Arabia and Georgia

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Gulf Hotels Group (GHG) is continuing to work on expansion opportunities in Saudi Arabia and in the Georgia market, chairman Farouk Almoayyed has said.

Speaking on the sidelines of the annual general meeting of shareholders held yesterday at the Gulf Hotel Bahrain Convention and Spa, Mr Almoayyed also said the group has signed an agreement to manage a four star hotel in the Seef District, details of which will be announced once administrative procedures have been completed.

The chairman noted that 2022 has seen a strong bounce-back from the Covid-19 pandemic period with both the hospitality and retail divisions enjoying strong growth on 2021.

“A tight control of costs has meant that, although revenues are yet to recover to pre-pandemic levels, the bottom line delivery has exceeded 2019, due to lower overhead expenses and depreciation,” he added.

“Additionally, as announced earlier, we are in the process of acquiring the Novotel Al Dana Resort and the transaction will be completed by April 30, 2023; this acquisition demonstrates our determination to carry out the expansion strategy on a local, regional, and international scale. Following the completion of the purchase, we will be carrying out a full renovation of the resort.”

The AGM saw shareholders approve a cash dividend of 25 per cent equivalent to 25 fils per share, amounting to BD5,649,872.

Held under the supervision of Bahrain Clear representatives, the meeting was attended by board members, representatives from the Industry and Commerce Ministry, the Central Bank of Bahrain, Bahrain Bourse, and auditors KPMG.

For the year 2022, GHG achieved a total gross operating revenue of BD31.395 million compared to BD23.001m in 2021, with an increase of BD8.394m or 36.5pc.

The group generated a net profit of BD6.669m in comparison to BD3.396m for the previous year, recording an increase of BD3.273m or 96.4pc.

Mr Almoayyed commented: “We are delighted with our performance, which is testament to the great efforts put forward by the board and executive management whose strategy significantly reduced the pandemic’s impact.”

The group chief executive, Garfield Jones, added: “Continuing on the chairman’s comments about the expansion of the business, our hotel in Tbilisi, Georgia, the Gulf Aquamarine Hotel, which is located next to one of the largest waterparks in the region, Gino Paradise, will have its official opening in early May and we are already seeing a strong influx of bookings from Bahrain and the Gulf region during the summer season.”