Gulf Hotel Group, the renowned Bahrain Stock Exchange-listed international hotel developer, has released its financial statements and results for the year 2018, showing that the group’s net profit has decreased by around 37% from BD11.03m in 2017 to BD6.92m in 2018.
As for the operating revenues, Gulf Hotels Group has generated a total of BD35m, indicating a 5.77% drop (BD2.15m) from the generated revenues of 2017 which mounted up to BD37.26m.
The downfall in both numbers was attributed to multiple reasons that include the purchase and opening expenses of Gulf Court Hotel Business Bay which was opened in Dubai in August 2018 and the group’s expansion in the beverage distribution sector of Sri Lanka, as well as the temporary shutdown of event venues and retail outlets for renovation like Gulf Convention Centre which was closed till the third quarter of 2018.
In his comment on the published financial results, Farouk Almoayyed, the chairman of Gulf Hotels Group explained that the drop that has occured in the sales and the revenues of the group was expected due to its expansion into Dubai hospitality market and the project upgrades it has implemented in 2018.
On the group’s future projects, Almoayyed said that Gulf Hotels Group is going to develop a restaurant complex on a land plot it has purchased in Block 338 in Adliya district in Manama and also operate food and beverages operation in Bahrain Bay area as per a contract the group has been awarded last year.
On the other hand, Garfield Jones, the CEO of Gulf Hotels Group has assured that the completion of Gulf Executive Residence project in Juffair area in December 2018 will significantly add to the group’s operating revenues and net profit in 2019.