Abu Dhabi: Abu Dhabi National Hotels (ADNH) reported a half-year loss of Dh42 million, with the group’s hospitality segment heavily disrupted by the onset of COVID-19.
Compared to the same period last year, the group had recorded a profit of Dh145 million, highlighting the heavy toll the pandemic has caused to the global leisure industry. Group revenue was also down to Dh453 million for the six-month period, compared to Dh690 million last year.
For its hotel segment, ADNH posted a loss of Dh21 million compared to a profit of Dh70 million last year, with revenue down to Dh310 million from Dh503 million.
“The hospitality industry across the UAE remained under pressure and experienced increased uncertainty due to the outbreak of COVID 19, which affected the performance of ADNH’s hotel segment,” the group said in a statement. “Cost optimisation strategy and decrease in operating expenses partially offset the declining revenues.”
ADNH currently owns 12 hotels in the UAE including several in Abu Dhabi; among them Ritz Carlton, Le Meridien and Sheraton. Its portfolio in Dubai includes Sofitel, Dubai Mall Hotel and Downtown Boulevard Hotel.
The group, which also operates a transport segment, reported a loss of Dh10 million for its Al Ghazal Transport, this down from a profit of Dh9 million year-on-year.
Cash and cash equivalents stood at Dh317 million, with total assets worth Dh11.1 billion.
Tough second quarter
On a quarter-by-quarter basis, ADNH posted a loss of Dh58 million during the second quarter of the year, with revenue also down to Dh109 million from Dh344 million in Q1, with most of the COVID-19 related business disruptions taking hold in Q2.
Profits and revenue for the same period last year stood at Dh9 million and Dh323 million respectively.