Bahrain-based Gulf Hotels Group's net profit surged 25.41 per cent to BD1.852 million ($4.911million) in the third quarter of this year.

The figure was an increase of BD375,197 ($997,862) from the net profit of BD1.477 million ($3.93 million) generated during the same period in 2010, the group’s chairman Farouk Almoayyed said.

Almoayyed expressed his appreciation and praised the substantial efforts of all the group's divisions, which have resulted in a positive turnaround during the third quarter.

He thanked the group’s executive management for continuously upholding an excellent standard of service, while diversifying the group's activities.

'A gross operating revenue of BD6.732 million ($17.90 million) has been generated during the third quarter of 2011. When compared with the BD6.207 million ($16.51 million) generated during the same period in 2010, this signifies a growth of more than $1million (BD525,107) or 8.46 percent for the third quarter. Overall net profit for the first nine months of 2011 is BD5.457million ($14.56 million), a decrease of BD2.553m ($6.79 million) or 31.87pc compared with the net profit of BD8.010m ($21.30 million) achieved during the same period of 2010,' he added.

He attributed this decline in the level of revenue and profit to the first two quarters of 2011 and the unrest, which has led to the cancellation of several major conferences, meetings, and events, including the 2011 Formula One Grand Prix, adding that the hospitality industry has suffered greatly during the first two quarters.

Gulf Hotels Group's chief executive, Aqeel Raees, thanked the management and staff of all the group’s divisions for their hard work and determination, which have resulted in a positive turnaround during the third quarter.

'We are pleased with the third quarter results, which indicate that the group has succeeded in overcoming the current challenging business climate,' Raees said.

'Although revenue levels dropped during the first two quarters of 2011, profitability was maintained through effective cost reduction, while always upholding an excellent standard of service,' he added.

Raees said the success of the Gulf Hotels Group has been a direct result of the vision of the board.

'While the group remains as always committed to excellence, future developments will include the unveiling of a new entrance gateway and the expansion and relocation of the hotel's laundry,' he said.

Other upcoming projects include the addition of a spa, and the introduction of five new state-of-the-art meeting rooms, which will serve the growing Mice market by adding to the present meeting facilities in the Gulf Hotel and Gulf Convention Centre. – TradeArabia News Service