News & Press Releases
Gulf Hotels Group B.S.C. announces its financial results for the year ended 31st December 2019
The Gulf Hotels Group B.S.C. (GHG) announces its twelve-month financial results for the current year including the fourth quarter. The company achieved a net profit during the fourth quarter of BD 1.734 Million compared to BD 1.182 Million during the fourth quarter of the previous year, with an increase of 46.7%. The earnings per share achieved during the fourth quarter of the year are 7 fils compared to 6 fils in the fourth quarter of last year. The Group achieved total comprehensive income for the fourth quarter of BD 1.764K, compared to BD 1.397K in the fourth quarter of last year, with an increase of 26%.
The increase in the net profit for the fourth quarter in comparison to the fourth quarter of last year mainly relates to an increase in income but is also due to preopening expenses at the Gulf Convention Centre earlier booked in 2018.
With regards to the YTD financial results, the company achieved net profit of BD 5.950 Million compared to BD 6.922 Million in the previous year, with a decrease of 14% and Earnings per share were 26 fils compared to 31 fils in last year and achieved total comprehensive income of BD 8.070 Million, compared to BD 7.432 Million in the previous year, with an increase of 8.6%.
The total equity for the year was BD 114.979 Million compared to BD 113.685 Million last year, with an increase of 1.1%.
The total assets for the YTD reached BD 136.727 Million compared to BD 141.645 Million in the previous year, with a decrease of 3.5 %. The gross profit from hotel operations achieved in the fourth quarter is BD 8,071 Million, compared to BD 6,285 Million in the fourth quarter of last year, with an increase of 28.4%. The gross profit from hotel operations achieved in the year is BD 17.191 Million, compared to BD 15.048 Million last year, with an increase of 14.24%.
In regards to revenue, the company achieved BD 10.455 Million during the fourth quarter, compared to BD 10.286 Million in the fourth quarter of last year, with an increase of 1.6%. With regards to YTD revenue, the company achieved revenue of BD 38.570 Million, compared to BD 35.111 Million last year, an increase of 9.9%.
The YTD decrease in the net profit resulted from a full year of operation of Gulf Court Hotel Business Bay Dubai in 2019 compared to only 5 months in 2018. There was a decrease in profits from associates and share investments down to BD 160K. On the other hand, the Group total revenue had increased by BD 4.459M compared to the previous year.
In this occasion, The Chairman, Mr. Farouk Almoayyed, announced that the board of directors have recommend 25% cash dividend to the shareholder annual general meeting. Mr. Almoayyed commented that the newly added business with initial years’ load, had affected the Group bottom line; nevertheless, those businesses will mature and make a positive contribution in the future. Mr. Almoayyed shed the light on numerous challenges impacting the hospitality industry in Bahrain and the region, which continues to face declining room rates from an oversupply of rooms.
On top of the Chairman’s statement, the CEO Garfield Jones stated that “The Gulf Hotel is currently preparing the opening of the refurbished Fusion Restaurant with an expanded terrace facility, and will open under the guidance of the talented Bahraini Chef Tala Bashmi. The CEO added that a JV (joint venture) was signed with Gulf Air Group to develop and manage the Bahrain Airport Hotel. Which has 84 rooms and scheduled to open in 2020.
The full set of financial statements and the press release are available on Bahrain Bourse’s website under trading code (GHG).