PRESS RELEASE
Gulf Hotels Group (GHG), the owners of the Gulf Hotel and shareholders and
operators of the Ocean Paradise Resort in Zanzibar, has announced a net
profit for 2007 of BD5.66 million, the highest since the Company’s inception
in 1967. The figure represented a growth in net profit of BD0.67 million or
13.4% compared to 2006. Gross operating revenues of BD 23.05 million
exceeded 2006 by BD 2.00 million or 9.5%.
The results were announced at the Company’s Annual and Extraordinary
General Meeting at the Gulf Hotel yesterday.
Shareholders approved a dividend payout of BD 3,105,532 (25%) and 10%
bonus share issue i.e. one for 10 shares.
They approved Director’s fees of BD 135,000, Charity Donations of BD
148,940 and BD 10,000 towards national promotional activities.
“It has been an outstanding year for Gulf Hotels Group”, Chairman Farouk
Almoayyed said in the meeting. “Trading results have been the best on
record and all divisions of Gulf Hotels Group exceeded their financial
budgets”.
The number of guests who visited the Gulf Hotel’s restaurant and banquet
facilities reached 533,641, by far the highest within the five-star market.
The Gulf Hotel’s Tower Block underwent a complete internal and external
transformation during the summer of 2007 at a cost of BD8.6m. The building
closed on the 1st May and reopened on the 1st November having been
completely refurbished, with a new, modern exterior and enlarged, luxurious
bedrooms that will maintain the Gulf Hotel’s position at the top end of the
Kingdom’s 5 star hotel market. The Al Waha Restaurant was also fully
renovated and the soft furnishings were upgraded in the Hotel’s lounges and
public areas.
The Hotel also added Typhoon to its already extensive food and beverage
portfolio and the outlet has received excellent customer feedback.
The Gulf Executive Residence, which opened in March 2006, has continued to
yield excellent results.
The complete refurbishment of the Gulf Hotel’s Tower Block is expected to
significantly improve the Hotel’s results in 2008, enabling the Hotel to grow
occupancy levels, average room rates and yield, all of which will have a
strong impact on bottom line performance.
GHG has signed an agreement with Mokan WLL to assist in the development
and to subsequently manage on behalf of Mokan WLL, a 5 star serviced
apartment facility in Juffair, consisting of 102 luxury apartments, with
extensive leisure and parking facilities for residents. Construction work has
already commenced on this project.
The Company plans to build a 600 bay multi-storey car park with 7000m² of
office space adjacent to the Gulf Hotel, the commencement of which was
deferred due to the Tower Block renovation and will now complete in March
2009. The facility will greatly benefit the Hotel which currently faces a
shortage of car parking at the height of operations, as well as cater for the
increasing demand for office space away from the Diplomatic area.
Designs are being finalized for a 90 seat Mexican restaurant and adjacent
wine bar which will augment the Gulf Hotel’s already extensive restaurant and
bar portfolio. The new outlets are expected to come on line towards the end
of 2008.
The Hotel will also undertake the renovation of the Men’s and Ladies Health
Clubs.
Finally, the addition of a state-of-the-art conference room on the top floor of
the Gulf Hotel, adjacent to the new Platinum Lounge will offer an excellent
meeting facility both to the Hotel’s Platinum Floor guests and corporate
clients.
The Company’s capital reinvestment in 2008 will be over BD 8.0 Million.
The Chairman also attributed the positive performance of the Company in
2007 to the strong economy and overall business growth in the kingdom. He
also cited the high price of oil as having an influence on growth.
Chairman Farouk Almaoyyed thanked the GHG Management and Staff for
their efforts, dedication and hard work, which resulted in achieving positive
results for the year 2007.
Adding to Mr Almoayyed’s comments, Mr Aqeel Raees, Chief Executive Officer
– Gulf Hotels Group, stated that he is very pleased with the results and
commented that all divisions of the Company have contributed to the
excellent results of 2007 in spite of the 6months closure of the Tower Block
for renovation and he further commented that the Gulf Hotels Group is
working hard to expand its horizon and achieve better results for the year
2008.