Business | Tourism
Kingdom Hotel Investments reports 8% net profit increase
Kingdom Hotel Investments (KHI), a leading emerging markets hotel investment company, yesterday reported an 8 per cent increase in net profit to $20.6 million (Dh75 million) during the first half of 2008, up from $19.1 million for the same period last year.
- Staff Report
- Published: 23:44 August 28, 2008
Dubai: Kingdom Hotel Investments (KHI), a leading emerging markets hotel investment company, yesterday reported an 8 per cent increase in net profit to $20.6 million (Dh75 million) during the first half of 2008, up from $19.1 million for the same period last year.
The revenues increased by 53 per cent to $115.5 billion from $75.4 billion during the first half of 2007, the company majority owned by Saudi billionaire Prince Al Waleed Bin Talal said in a statement.
"Strong revenues and earnings before interest, tax, depreciation and amortisation [EBITDA] growth in subsidiaries are driven by five Asian subsidiary properties acquired in 2007, as well as strong 'like-for-like' growth across KHI's 12 comparable hotels," the company said.
The company is in advanced stages of negotiations with various lenders to add $300-350 million of new debt commitments by year end, it said.
These commitments would represent corporate, development and refinancing facilities in a combination of non-recourse, limited recourse and corporate recourse facilities.
In July, the company's Four Seasons associated hotels in Egypt - of which it has $28 million in shares - resolved to distribute dividends, the statement added.
Asia contributed 43 per cent of reported hotel revenues so far this year versus 21 per cent in 2007.
"Based on current trading trends, KHI continues to expect System RevPAR growth in the mid-teens for 2008," KHI said.
During the rest of the year, KHI expects to complete its planned renovation programmes, open the Four Seasons Mauritius resort and complete residential sales in October, as well as advance construction on its development projects.
"Other ancillary real estate sales are expected to progress with continued pre-sales activities in Manila and the launch of the Raffles Seychelles residential marketing programme," the company said.
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