Thursday, August 28, 2008

Revenue surge boosts hotel group

Original Article

Kingdom Hotel Investments (KHI), the Dubai based international hotel and resort real estate investment company, said net profits grew 8 per cent on a 53 per cent surge in revenues in the first half of the year compared to the same period last year.

The company’s expansion of its Asian operations accounted for much of the revenue growth.

Sarmad Zok, the chief executive officer of KHI said the positive results this year are mainly a result of to the company acquiring five hotels in Asia. “KHI has delivered a strong financial performance in the first half as we continue to actively manage the Group’s portfolio in selective high growth markets especially in Asia,” said Mr Zok.

Despite the fact that economic slowdown hit tourism badly this year KHI managed to stay clear of these declining markets through their existing diversified portfolio in the Middle East, Asia and Africa.

“Asia represented 43 per cent of reported hotel revenues compared with 21 per cent in 2007,” said Mr Zok. “Asia represented 43 per cent of reported hotel revenues compared 21 per cent in 2007,” said Mr Zok. “The positive aspect of investing in emerging markets is that their economy growth rates were still on the rise when the rest of the world was facing a down-turn.”

Saudi billionaire and member of the Royal family Prince Alwaleed Bin Talal Bin AbdulAziz al saud, is the founder and chairman of KHI.

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