Shareholder equity at the end of the quarter was KD56.1m ($196.5m) compared to KD48.7m ($175.5m) during quarter one 2012. The company’s total assets also increased to KD401.3m ($1.4bn), an increase of 4% compared to the same period last year.
Talal Jassim Al-Bahar, Chairman and Group CEO, IFA HR, stated: “The profits we are recording this quarter are largely attributable to the sale of our interests in Raimon Land and to the opening of our new five-star hotel in Dubai: Fairmont The Palm.”
The group disposed of its holding in Raimon Land, an asset classified as held for sale, for a consideration equivalent to KD20,737,625 ($72.6m) resulting in a gain approximately equivalent to KD12,876,430 ($45.1m).
Fairmont The Palm opened in December 2012 and has been well received in the market, attracting a large number of groups and conferences thanks to its exceptional 2,200m² business facilities.
Based on its competitive set, we expect to see Fairmont The Palm continue to command a premium of up to 70% versus city centre hotels. In addition to its conferencing facilities, that figure takes into account the hotel’s location, its 460-metres of beachfront, 1,600m² spa, an array of amenities, seven food and beverage outlets and expected service levels.
Al-Bahar concluded: “The year ahead will be a rewarding one for IFA Hotels & Resorts. During the remainder of our financial year, we will complete several elements of Kingdom of Sheba, open the Mövenpick Hotel Jumeirah Lakes Towers, launch an exciting new project on the Palm and announce the finalization of an agreement to build a YOTEL in Dubai. We are confident that our shareholders will be further rewarded for their support in the quarters to come.”
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