Gulf Hotels Group sees significant upswing

MANAMA: Gulf Hotels Group has reported net loss of BD424,515 for the second quarter (Q2) of 2021 when compared with a loss of BD4.071m in the second quarter of the previous year, with a decrease in loss of BD3.647m or 89.57 per cent.

The loss per share is 2 fils compared to loss of 18 fils in the second quarter of last year.

Total comprehensive loss was BD417,393, compared to a loss of BD4.874m for the second quarter of the previous year, with a decrease in loss of BD4.457m or 91.44pc.

Gross profit of BD2.018m, compared to BD965,984 for the same period in last year, with an increase of BD1.052m or 108.86pc.

Revenue of second quarter was BD4.669m, compared to BD3.417m for the same period last year, with an increase of BD1.251m or 36.61pc.

The decrease in the net loss for the second quarter in comparison to the same period last year resulted mainly from increase in revenue of BD1.251m. Also decrease in depreciation by

BD236,103, interest expense BD67,177, impairment in trade receivable BD337,525 and impairment in PPE of BD2,315,810.

For the first six months of 2021, net loss was BD631,634 compared to a loss of BD2.999m in the six months of the previous year, with a decrease of BD2.367m or 78.94pc.

The loss per share is 3 fils compared to loss of 13 fils in the six months of the last year.

Total comprehensive loss was BD574,471 compared to a loss of BD4.268m for the six months of the previous year, with a decrease in loss of BD3.693m or 86.54pc.

Gross profit of BD3.805m, compared to BD4.216m for the same period in last year, with a decrease of BD411,263 or 9.75pc.

Revenue of BD9.128m, compared to BD11.071m for the same period in last year, with an increase of BD1.943m or 17.55pc.

The total equity (excluding minority interests) for the year was BD97.776m compared to BD100.622m in last year, with a decrease of BD2.845m or 2.83pc.

The total assets for the YTD reached BD113.627m compared to BD118.78m in the previous year, with a decrease of BD5.153m or 4.34pc.

The decrease in the net loss for the six months in comparison to the same period last year resulted mainly from the saving made in operating costs by BD1.531m, administrative staff cost by BD106,354, depreciation by BD528,271, reduce of interest expense BD124,719, property and equipment impaired of BD2,315,810 and doubtful debt by BD336,291 helped in reducing the company net loss compared.

In the other hand the revenue dropped behind last year by BD1.942m due to the fact the business in the first quarter of 2020 was good (pre-covid) and decrease in profit from associate by BD197,726.

Chairman Farouk Almoayyed said: “The hospitality industry continues to be severely affected by the Covid-19 pandemic which resulted in food and beverage and retailing outlets being closed for the month of June. Additionally, restrictions on entry into Bahrain from the sub-continent has added to the impact and loss of business to hotels.

He further added: “Our teams have been working hard to minimise costs and the negative effect resulting from the restriction to business and we are hopeful that with Bahrain moving to the Green Level and restrictions being eased, that Q3 and Q4 will show a significant pick-up.”

Adding to comments of the chairman, chief executive Garfield Jones said: “With the easing of restrictions, the Gulf Hotel plans to reopen some additional restaurants such as La Pergola, that remained closed since the pandemic started.”

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