National Corporation for Tourism and Hotels reports drop in profit on impact of Covid-19
Revenue was up during Q1 as retail and catering business remained largely unaffected
Abu Dhabi: The National Corporation for Tourism and Hotels reported a drop in profit to Dh23.9 million for the first three months of the year, as hotel bookings and demand took a hit as a result of the Covid-19 pandemic.
The company owns and manages a number of major hotels and resorts in the emirate of Abu Dhabi including Intercontinental Abu Dhabi, Al Raha Beach Hotel and Danat Al Ain Resort.
Despite the drop in profit, the group’s Q1 revenue was up compared to last year at Dh197.6 million, with the company’s catering and retail side of business largely remaining unaffected.
On its hotel business side, profit was down to Dh2.9 million compared to Dh13.6 million in the same period last year, largely as a result of the disruptions to the leisure industry brought on by the pandemic.
The group’s cash and cash equivalence stood at Dh51.3 million, with the company holding total assets of Dh2.2 billion.
On its capital commitments, the group had estimated commitments for the Grand Marina Hotel, Saadiyat Hotel, and hotel renovations of Dh151.4 million.
“The corporation’s hotels division have felt the impact of the pandemic, with travel restrictions both internationally and locally affecting the demand for hospitality business,” the group said in a statement.
“The corporation believes that the economic conditions would improve in the near future, and the current situation has no long term effect to the corporation’s assets and no impairment was recognised in its books,” the statement added, with the group noting that it believed the current disruptions to be short term in nature with any shortfalls being absorbed by its other business segments.
“The impact of Covid-19 may continue to evolve, but at the present time the projections show that the group has sufficient resources to continue in operational existence,” the group said, highlighting its robust position to weather the current situation.