Gulf Hotels Group achieves $15.78mln net profit in 2019

MANAMA: The Gulf Hotels Group (GHG) achieved a net profit of BD1.734 million during the fourth quarter of 2019 compared with BD1.182m during the fourth quarter of the previous year, with an increase of 46.7 per cent.

The earnings per share achieved during the fourth quarter of 2019 are seven fils compared with six fils in the fourth quarter of 2018.

Total comprehensive income for the fourth quarter 2019 was BD1,764,000, compared with BD1,397,000 in the fourth quarter of the previous year, with an increase of 26pc.

The increase in the net profit for the fourth quarter mainly relates to an increase in income but is also due to pre-opening expenses at the Gulf Convention Centre earlier booked in 2018.

The company achieved net profit of BD5.950m in 2019 compared with BD6.922m in the previous year, with a decrease of 14pc and earnings per share were 26 fils compared with 31 fils in 2018 and achieved total comprehensive income of BD8.07m, compared with BD7.432m in the previous year, an increase of 8.6pc.

Total equity for the year was BD114.979m compared with BD113.685m last year, an increase of 1.1pc.

The total assets for 2019 reached BD136.727m compared with BD141.645m in the previous year, with a decrease of 3.5pc.

Gross profit from hotel operations in the fourth quarter was BD8.071m, compared with BD6.285m in the fourth quarter of the previous year, with an increase of 28.4pc.

Gross profit from hotel operations achieved in the year is BD17.191m, compared with BD15.048m last year, an increase of 14.24pc.

The company achieved revenue of BD10.455m during the fourth quarter, compared with BD10.286m in the fourth quarter of last year, an increase of 1.6pc.

The company achieved revenue of BD38.570m in 2019, compared with BD35.111m last year, an increase of 9.9pc.

The decrease in the net profit resulted from a full year of operation of Gulf Court Hotel Business Bay Dubai in 2019 compared with only five months in 2018.

There was a decrease in profits from associates and share investments down to BD160,000.

On the other hand, the total revenue increased by BD4.459m compared with the previous year.

Chairman Farouk Almoayyed announced that the board of directors has recommended 25pc cash dividend.

Mr Almoayyed commented that the newly added business with initial years’ load has affected the group’s bottom line; nevertheless, those businesses will mature and make a positive contribution in the future.

He said the hospitality industry in Bahrain and the region continues to face declining room rates from an oversupply of rooms.

Chief executive Garfield Jones said, “The Gulf Hotel is preparing for the opening of the refurbished Fusion Restaurant with an expanded terrace facility, and will open under the guidance of the talented Bahraini chef Tala Bashmi. A JV has been signed with Gulf Air Group to develop and manage the Bahrain Airport Hotel, which has 84 rooms and is scheduled to open this year.”

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