Kingdom Hotels boosts profit by nearly 25%

20 March 2007 by
Kingdom Hotels boosts profit by nearly 25%

Dubai-based hotel group, Kingdom Hotel Investments (KHI) saw gross profit rise by nearly a quarter in 2006 last year, in the first year since being taken public.

The group, which focuses on developing in emerging markets, acquired $1.4b worth of assets with agreements to develop or buy 11 new hotels last year, taking its total portfolio to 33.

Despite three of KHI's properties in Lebanon, Beirut and Egypt being affected by adverse local conditions revenue for the year to 31 December 2006 was up 68% to $99m, with gross profit up 24% to $14.3m.

KHI Chief executive Sarmad Zok said the results showed the strength of the company's business model, adding that 2007 would bring more of the same.

"We have built up a strong, diversified and resilient asset base. Our strategy is to continue to diversify and extend our operating base focusing on properties in global emerging and high growth markets. We have accentuated our investment focus on branded ancillary real estate and continue to invest in people and systems to support KHI's growth." he said.

Company chairman HRH Prince Alwaleed Bin Talal added: "In 2007 KHI has already identified and secured some key unique assets in target markets and continue to drive our fast paced expansion strategy in emerging territories."

Kingdom sees turnover soar by 53% >>

Sarmad Zok profile >>
Kingdom plans to go public >>
By Emily Manson

E-mail your comments to Emily Manson]( Hotels boosts profit by nearly 25%) here.

Get your copy of Caterer and Hotelkeeper every week -

[Sudoku]( "A new puzzle every day!") Join the craze and play Sudoku online!
[Newswire For the latest hospitality news, sign up for our e-mail news alerts.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking