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Sat 3 Dec 2011 01:20 PM

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Al Habtoor eyes 10% growth in hotels revenue in 2012

Dubai conglomerate also forecasts 17% increase in gross operating profit next year

Al Habtoor eyes 10% growth in hotels revenue in 2012
Khalaf Al Habtoor is upbeat about hotel revenues in 2012

The hotels unit of UAE conglomerate Al Habtoor Group said on Saturday it was forecasting double digit revenue growth for 2012.

Habtoor Hotels, which owns and operates four hotels in Dubai including the Metropolitan Hotel, said it expected revenues to rise by 10 percent next year compared to 2011.

It also said that gross operating profit was forecast to increase by 17 percent in 2012 over this year.

"The four hotels have achieved good results in 2011 and have maintained a robust market share," the company said in a statement.

"The hotels management teams are optimistic for the year 2012 and have manifested that by presenting a budget with a healthy growth of 10 percent in revenue and 17 percent in GOP over the current year," the statement added.

Khalaf Al Habtoor, chairman of Al Habtoor Group, said: "We are pleased with Habtoor Hotels performance and I am confident that our management will exceed our expectations in the coming year.

"Dubai remains one of the most popular destinations in the world for all kinds of tourism and on the recent years for business tourism."

The Al Habtoor Group is best known for construction, but also has interests in the hotel, automotive, real estate, education, insurance and publishing sectors.

Dubai-based Al Habtoor Group said last week that it is reviewing plans to demolish its Metropolitan Hotel and redevelop the site for a new hotel project.

The conglomerate is studying plans to include a museum, theatre or mall on the site of the Sheikh Zayed Road hotel and is likely to make an announcement in January, Khalaf Al Habtoor told Dubai Eye.

The company in October announced it would resume work on an AED1bn hotel project on the Palm Jumeirah. The project, which will be funded by the group, will be the first of several announcements to be made before the end of the year.

The five-star hotel, which is expected to open to guests by 2013, will include a spa, private beach, six restaurants and a nightclub, said the group.

Construction work on the 330-room hotel was stalled in the wake of Dubai’s debt crisis, which saw property prices in the emirate decline by more than 60 percent from their 2008-peak.

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