Kingdom Hotels sees turnover soar by 53%
Kingdom Hotel Investments' strategy of acquiring underperforming properties in developing markets has seen group turnover soar 53% from the previous year to $58.8m (£32.8m).
The company's results for the 12 months to 31 December 2005 showed gross profit increased by 41% to $17.9m (£9.99m), compared with $12.7m (£7.09m) for the same period in 2004.
Underlying profitability (earnings before interest tax depreciation and amortisation) grew by 105% from $8.8m (£4.9m) to $18m (£10.1m).
Revenue per available room also increased by 23% to $81 (£45) compared with $66 (£37) in 2004.
Saudi multi-millionaire and company chairman Prince Alwaleed bin Talal said: "KHI's performance demonstrates the strength of our strategy of acquiring underperforming assets with clear potential supported by active assets with clear potential supported by active asset management."
Kingdom signed agreements to acquire or develop 2,000 rooms in 13 hotels last year, including five ex-Fairmont properties in Keyna and the new Four Seasons Damascus.
Chief executive Sarmad Zok added: "We continue our focus on the selective acquisition and development of hotels and resorts where we see growth potential and the opportunity to enhance value."
Kingdom buys Mauritian hotel >>
By Emily Manson
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