Action Hotels, developer of three and four-star hotels in the Middle East and Australia, widened its first-half loss as costs rose, the Dubai-based company said yesterday.
Net loss attributable to equity owners in the six months to the end of June 30 reached US$3.67 million, up from $679,000 in the year earlier period, the company said in a statement to AIM, the London Stock Exchange’s market for small companies.
Administrative costs jumped by 20 per cent to $16.7m from $13.9m, while net finance cost more than doubled to $5.58m from $2.67. “Finance costs have increased as the company has, as planned, utilised debt facilities to fund the pipeline of hotels, some of the funds are also directed to the operation,” the company said.
But revenue rose 18 per cent to $25.56m from $21.67m.
Action Hotels owns 11 hotels with 2,030 rooms in Middle East and Australia, including three in the UAE.
“We remain committed to growing our portfolio and are continuously exploring new hotel opportunities,” said Sheikh Mubarak Al Sabah, Action’s founder and chairman.
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