Gulf Hotels Group (GHG), a Bahrain-based owner and operator of hotels, has reported total gross operating revenue of BD17.11 million ($45.39 million) for the first six months ended June 30, as against BD17.91 million for the same period last year.

In a statement, the company said net profit for the period was BD6.01 million as against BD7.57 million in the same period last year, said a report in the Gulf Daily News (GDN), our sister publication.


The financials were approved by the company’s board during its meeting yesterday (July 15) led by chairman Farouk Almoayyed.

The statement quoted Almoayyed as saying that the decrease of 4.44 per cent in operating revenue and 20.60 per cent in net profit mirrored the effect of a slight drop in business levels due to increased competition, reduced oil prices, overhead costs and reduced investment income.

However, he said he was hopeful of overcoming some of these factors and improving profit levels in the coming quarters.

For the second quarter, GHG’s gross operating revenue saw a decrease of 6.93 per cent to BD8.31 million when compared with BD8.93 million for the same quarter last year.

Similarly, net profit decreased 20.43 per cent to BD2.9 million when compared with BD3.64 million achieved in the same period last year.

Almoayyed said the company has already signed hotel management agreements with a four-star hotel in Seef and another one in the Manama area, both of which will be operational in the second half.

These, he said, are expected to strengthen GHG’s development into an international chain of hotels.

On the expansion of the company into the stand-alone restaurant business, Almoayyed said it has acquired Block 338 in Adliya Tourism Zone and is developing plans for a multi-unit restaurant and leisure facility, construction of which is expected to start later this year.

Chief executive and director Aqeel Raees said the refurbishment of the Awal Ballroom at the flagship Gulf Hotel has already started and is expected to be completed by August-end.

He said the Oak Lounge at the Gulf Hotel is now ready to welcome guests for Eid Al Fitr, as is the refurbished Gulf Executive Residence.

Raees said the soft refurbishment of the Tower Block rooms would also be undertaken during the second half of the year.

The development of the Gulf Residence Amwaj in conjunction with Lona Real Estate is nearing completion and the 173-unit, four-star apartment hotel is expected to open shortly, he added.

The construction of a new spa at the Gulf Hotel is also underway with completion expected in the last quarter.

GHG is currently developing a 108-unit serviced apartment facility in Juffair, with construction expected to commence towards the end of the year.

The project is expected to take up to 24 months to complete. - TradeArabia News Service