The Abu Dhabi-listed National Corporation for Tourism and Hotels (NTCH), yesterday said it would continue to invest in new projects even as first-half profit declined for its core hotels divison.
The company owns InterContinental Abu Dhabi and Sands Hotel in the capital. It also owns and manages Danat Jebel Dhanna Resort, Dhafra Beach Hotel and Danat Al Ain Resort.
Yesterday, it reported net profit in the hotels division fell by 12 per cent to Dh43.9 million as operating revenue from the division declined 2.4 per cent over the same period to Dh148.39m.
The group also owns and manages Al Raha Beach Hotel and the four-star Tilal Liwa Hotel.
The total revenue of the group increased by 8.3 per cent to Dh377.2m during the first six months. NCTH’s net profit increased by 45.6 per cent to Dh89m, with gains for the retail and catering divisions.
The company is investing Dh10.7m in existing hotel projects. Among them is the waterfront InterContinental Abu Dhabi-Grand Marina, which will be located near the existing InterContinental and was announced last month.
NCTH was not immediately available for comment yesterday.
The number of tourists in Abu Dhabi during the first half of the year increased by 28 per cent to 1.7 million, according to Abu Dhabi Tourism and Culture Authority.
Occupancy levels also increased year-on-year to 77 per cent. Hotel and room revenues both went up by 15 per cent to Dh3.08 billion and Dh1.57bn, respectively.
“Hotel performance in Abu Dhabi is aligned with the market performance, which shows higher occupancies and static average room rate,” said Filippo Sona, the head of hotels at the consultancy Colliers International’s Dubai office. “This allow hotels to achieve higher revenues, driven by higher volume, but with the increase in operating expenses, the net profit may suffer slightly.”
ssahoo@thenational.ae
Follow The National's Business section on Twitter
