Abu Dhabi: Abu Dhabi National Hotels Company (ADNH) reported on Thursday Dh236.9 million in net profit for 2015, marking an 18 per cent increase over the Dh200.4 million reported in 2014.
The results put net profit for the fourth quarter of 2015 at Dh89.9 million — a significant increase from the Dh35.5 million reported in the same quarter in 2014.
Meanwhile, total revenues reached Dh1.38 billion in 2015, rising three per cent compared to the Dh1.34 billion recorded in 2014.
In a statement posted on Abu Dhabi Securities Exchange (ADX), where the ADNH is listed, the company said the hotel division accounted for 67 per cent of total revenues. The division reported a net profit of Dh96 million during 2015.
Saif Al Hamed, chairman of the board of directors of ADNH, said that hotel performance in the UAE was under pressure due on changes in both demand and supply.
“On the demand side, we are experiencing increased uncertainty due to the Euro and the Russian Ruble devaluation, as well as the fall in oil prices, which may impact tourism arrivals from Europe, Russia, and the GCC countries. Corporate and government-generated business has also been impacted by these factors,” the chairman said.
He added that increased supply in the market was also impacting performance in terms of occupancy levels and room rates.
“Last but not least, we are witnessing a generation shift with significant impacts on the travel and hospitality industry overall. In 2016, we aim to realign our strategies to meet the needs of future travellers,” Al Hamed said.
The company’s catering division, ADNH Compass, recorded Dh110 million in net profit in 2015 — up from Dh95 million in 2014. The transport division, which operates Al Ghazal Taxi, saw a 46 per cent increase in net profits to Dh31.2 million during the year.
