Bahrain-based Gulf Hotels Group recorded a 10.75% increase in its revenues during the second quarter of 2019, going up from BD7.889 million ($20.7 million) to BD8.737 million ($23 million).
Gross operating profit was BD2.724 million ($7.1 million), compared to BD2.766 million ($7.2 million) in the second quarter of 2018, a decrease of 1.54%.
Net profit during the second quarter was BD490,000 ($1.29 million) compared to BD1.731 million ($4.56 million) during the second quarter of the previous year, a decline of 71.69%.
The decrease in the net profit for the second quarter in comparison to last year was a result of increased depreciation of BD746,000 ($1.96 million) resulting from the new Dubai property, the Gulf Executive Residence Juffair and major projects executed during 2018.
In addition, interest costs of BD240,000 ($632,244), excess share of loss from an associate of BD120,0000 ($3.1 million) and F1 movement to the first quarter all influenced Q2 results.
In year-to-date terms, the company achieved a revenue of BD18.819 million ($49.5 million), compared to BD16.600 million ($43.7 million) last year, which is an increase of 13.37%.
Gross operating profit was BD6.279 million ($16.5 million), compared to BD5.841 million ($15.3 million) last year, up 7.49 per cent.
The chairman, Farouk Almoayyed, commented that the hospitality industry in Bahrain is showing signs of stabilising and the group’s hotels have performed better than last year; however, the Dubai market is very challenging due to a huge oversupply, resulting in a significant drop in room rates and lower than expected occupancy.