Gulf Hotels Group focuses on rebuilding business

Total comprehensive loss was $3.1mln

  

MANAMA: Gulf Hotels Group (GHG) has reported a net loss of BD1.683 million in the third quarter of 2020 as against a profit of BD1.428m in the third quarter of the previous year, a decrease of BD3.110m.

Loss per share is 8 fils compared with earnings of 6 fils in the same quarter last year.

Total comprehensive loss was BD1.174m, compared with profit of BD1.733m, with a decrease of BD2.907m.

Gross profit was BD1.155m, compared with BD3.958m for the same period last year, with a decrease of 70.8pc.

Revenue was BD3.727m, compared with BD9.295m earlier, with a decrease of 59.90pc.

The decrease in profit for the quarter resulted mainly from decreases in revenue due to various restrictions introduced to combat the spread of Covid-19 that have had an impact on the hospitality industry in general and have limited the normal operation of the group’s hotels, restaurants, catering and ancillary services.

For the first nine months of the year (YTD), net loss was BD4.682m compared with profit of BD4.216m in the same period of previous year, with a decrease of BD8.897m.

Loss per share was 21 fils compared with earnings of 19 fils last year.

Total comprehensive loss was BD5.442m, compared with BD6.306m for the same period in the previous year, with a decrease of BD11.748m.

Total equity (excluding minority interests) for the year was BD103.651m compared with BD114.979m last year, with a decrease of 9.85pc.

Total assets as of YTD-end were BD122.888m compared with BD136.727m in the previous year, with a decrease of 10.12pc.

Gross profit was BD5.371m, compared with BD12.317m for the same period last year, with a decrease of 56.39pc.

Revenue was BD14.798m, compared with BD28.115m for the same period last year, a decrease of 47.37pc.

The decrease can be attributed to measures taken to combat the spread of Covid-19.

In addition, the company booked provisions for property impairment of BD2.3m, impairment on trade receivable of BD400,000 and loss from associates against last year of BD709,000.

On the other hand, the group received government assistance of BD658,000.

Chairman Farouk Almoayyed expressed gratitude for the generous government support programme.

He further reiterated that “whilst the impact of the pandemic on the company’s result has been significant, the tremendous efforts of the board and the management in reducing costs has ensured a positive result before depreciation and impairment.”

“With the drop in the number of Covid-19 cases and the easing of restrictions that has seen the reopening of restaurants, the worst of the financial impact has passed and we can now concentrate on rebuilding business whilst continuing to follow all measures to check the spread of the virus,” added Mr Almoayyed.

CEO Garfield Jones said, “We have also been working on the development of the new transit hotel within Bahrain International Airport. The project is nearing completion and the new Bahrain Airport Hotel, consisting of 84 rooms and sleeping pods, will be launched along with the opening of the new airport terminal.”

He added, “In addition to a spa, salon and passenger massage area, the hotel will offer family sized rooms, compact rooms and, for the first time in the region, 24 sleeping pods.”

Mr Jones said the Gulf Hotel has just opened the new outdoor, rooftop terrace of Fusions by Tala - overseen by Bahraini chef Tala Bashmi.

The restaurant was completed in March, but could not be opened due to restrictions.

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