Richard W. Riley, CEO of ADNH
Abu Dhabi National Hotels ADNH, the leading diversified UAE-based hospitality company with interests in hotels, catering, transport and retail, today announced its financial results for the third quarter of 2011, ending 30 September.
For the nine months to September 2011, total group revenue increased by 7.4% to AED 1,338.1 Million while gross profits increased by 13.4% to close at AED 206.7 Million. Third quarter net profits declined by AED 48 million compared to the third quarter of 2010 due to a provision for asset impairment loss of AED50m charged to write down the cost of a hotel project under development against its recoverable amount as a result of the current market conditions.This charge will not affect the company’s operations, cash flow or cash position but will impact the net income and earnings per share figures for 2011.The company’s total assets stood at AED 9,765 million as on 30 September 2011.
According to the financial report issued by the company, ADNH has seen a strong performance and steady growth of its subsidiaries, led by its hotel, retail and catering divisions.The hotel division, which encompasses prominent internationally branded hotels owned by the company as well as ADNH-developed, owned and managed Al Diar Group, accounted for AED 120.5 million of revenues. Continued solid performance within the company’s award-winning catering division, ADNH Compass, saw revenues of AED 202 million for the quarter – representing an 11.1% growth rate over the corresponding period last year. The company's transport division, Al Ghazal Transport, delivered a solid performance with revenues of AED 58.15 million for the quarter.
Commenting on the financial results, H.E. Salem Mohamed Athaith Al Ameri, Chairman of ADNH said “despite the solid operating performance by the Company which bears witness to the underlying strength of the organization, and given the change in market conditions, the Board considers it necessary to recognize the fair value of its assets in its continued effort to improve the transparency and reliability of financial data available to its stakeholders. For that reason, an asset impairment provision in the sum of AED50m was recognized in this quarter which is attributable to the change in forecast market conditions and which is subject to further study and evaluation by the Board by year end.”
Mr. Richard W. Riley, CEO of ADNH added: “The excellent financial results achieved by the Company for this quarter as well as previous quarters of this year bear witness to the success of our business strategy, which focuses on providing high quality, tailor-made and unique offerings aimed at meeting and exceeding the needs and expectations of our partners and customers. As we look ahead confidently to a fourth quarter, ADNH will continue its commitment to excellence across the varied hospitality sectors in Abu Dhabi and region-wide.”
ADNH is currently developing two leading luxury hotel brands in the capital, designed to redefine the hotel experience in Abu Dhabi. The Ritz-Carlton Abu Dhabi, Grand Canal, the first Ritz-Carlton property in the capital, is comprised of 395 luxury rooms, 52 suites and 85 independent villas situated in one of the most magnificent waterfront locations in the city on the Grand Canal between the two bridges. Park Hyatt Abu Dhabi Hotel and Villas, the largest Park Hyatt hotel in the world, is primed to become the company’s flagship beachfront resort and is expected to open in the last quarter of this year. The resort includes 270 spacious rooms and suites, and with private beachfront villas housing another 36 rooms and suites all located on the exclusive sanctuary of a nine-kilometre stretch of environmentally-protected beach on Saadiyat Island. The first to be opened on Saadiyat Island, the resort promises to offer visitors an unrivalled level of hospitality in the truly unique setting in the heard of Abu Dhabi’s nature.