Gulf Hotels’ profit drops after Iranian airstrike on Manama

Gulf Hotels Group’s net profit halved in the first quarter after an Iranian strike damaged one of its prime properties in Manama.

Net profit dropped to BD1.2 million ($3.2 million) in the quarter ended March 31, from BD2.5 million a year earlier, the hospitality company said in a statement to the Bahrain Bourse.

Revenue fell 21 percent to BD7 million in the three months, while assets slipped 5 percent to BD111 million.

“We delivered a strong start to the quarter; however, performance was subsequently impacted by the spillover effects of ongoing regional conflict and heightened geopolitical tensions,” chairman Fawzi Kanoo said.

These developments weighed on travel demand across Bahrain and the GCC, resulting in lower hotel occupancy and increased operating costs, he added.

The March 1 strike on the 278-room Crowne Plaza hotel in Manama caused significant structural damage and led to temporary closure.

Kanoo said the company remained cautiously optimistic about the outlook for Bahrain’s tourism and hospitality sector, supported by government initiatives.

CEO Ahmed Janahi said the company was expanding its third-party operator partnerships and is moving ahead with Burhan Hotels to manage and operate three properties in Mecca, with close to 1,000 rooms.

Gulf Hotels Group, known as Bahrain Hotels Company before listing, was founded in 1969. It has eight hotels.

The company’s stock closed at BD0.364 on Wednesday.

Further reading:

• Frank Kane’s Diary: Dubai is missing its tourists – so am I
• North Africa gains as Gulf tourists swerve war
• Opinion: War exposes Gulf tourism’s need for a new approach