ABU DHABI // Abu Dhabi National Hotels (ADNH) saw net profit rise 27.8 per cent in the first nine months of the year, despite its hotels division posting a fall. The company, which owns the Hilton, Le Meridien and Al Diar line of hotels in the capital, reported that net profits rose to Dh372.5 million (US$101.4m), from Dh291.5m for the same period last year. "ADNH continued to thrive across all business divisions," said Saif al Hajeri, the chairman of the company. "Hotel operations are performing positively as high rates of occupancies and stable room rates were registered in all International and Al Diar hotels."
A shortage of rooms and major events have helped the capital's hotel industry in a difficult environment, said Max Cooper, the executive vice-president of Jones Lang LaSalle Hotels. But room revenues have fallen by the largest amount in six years, the latest data from STR Global shows. Revenue per available room, a key industry measure, in the capital fell by 16.9 per cent in September from the same month last year, while the average daily rate fell by 6.8 per cent to $200.52, it said.
But the capital's rates were still higher than those in Dubai, which had an average daily rate of $175.62. ADNH's hotel division reported that net profit fell by 17 per cent to Dh217m in the first nine months of this year, compared with Dh263m for the same period last year. While its average room rates were above last year's, occupancy rates were slightly down, which led to a drop in revenue, ADNH said in a statement to the Abu Dhabi Securities Exchange.
Its gross profits fell to Dh389.4m in the first nine months of this year from Dh415.7m in the same period last year, but were propped up by gains from its income from investments and interest on fixed deposits. Those revenues rose to Dh91.25m between January and September this year, compared with a loss of Dh34.78m in the first nine months of last year. ADNH also made net profit gains from its catering and general purchasing departments. Earnings per share rose, from 29 fils last year to 37 fils per share in the first nine months of this year.