Gulf Hotels Group (GHG), owner and operator of Gulf Hotel Bahrain, posted a net profit of BD3.6 million ($9.6 million) for the first half of the year against BD6.5 million in the same period of 2010, marking a fall of 44.8 per cent

Chairman Farouk Almoayyed said that the negative business climate caused by the unrest had a direct effect on the financial results in the first six months of the year, which fell well below expectations.

The cancellation of the 2011 Formula One Grand Prix, together with most of the major conferences, meetings and banquet functions, plus the travel ban imposed by many countries, all contributed to a substantial decline in results as compared to the second quarter of 2010.

The group managed to achieve a gross operating revenue of BD13.7 million compared with BD17.585 milion in 2010, a decrease of BD3.854 million or 21.92 per cent.

Chief executive officer Aqeel Raees said that even though the hospitality industry has been hit severely by the unrest, profitability has been maintained by efficient utilisation of resources and cost reduction without compromising on the standards.

He said that the group remains committed to the development of the company and continued to plan for upcoming projects which will include the refurbishment of the Gulf Executive Residence, construction of a new entrance gateway, addition of a spa and relocation and expansion of the hotel's laundry. – TradeArabia News Service