Kingdom Hotel Investments (KHI), the hotel and resort investment company headed by HRH Prince Alwaleed, has reported strong results for the first half of this year.
Results for the first half of this year show that total revenue increased by 74% to US$74.3m as the company developed its strategy of diversifying its income streams. However, net profits were down 39% on the same period last year, mainly because a non-recurring deferred credit revenue of $12.8m was included in the accounts for the first half of 2006.
Hotel revenue increased by 63% to $66.5m, and KHI's EBITDA (earnings before interest, tax, depreciation or amortisation) increased 171% to $15.1m.
Chairman HRH Prince Alwaleed Bin Talal said in a statement: "These strong figures demonstrate the successful implementation of KHI's strategy since its listing in early 2006. The Group's focus on building a portfolio of properties with clear potential supported by active asset management is delivering the expected returns and supporting the long term future of the company."
Since the start of 2007, KHI has announced eight acquisitions, four of which were made in the first half of the year.
Sarmad Zok, CEO of KHI, said: "We are now approaching a new phase in our development as we focus on integrating the diversified assets in our portfolio; we are on track to continue deploying capital in key areas of under penetrated growth or where we have invested. We will leverage our balance sheet to fund this next phase of organic growth and will continue to manage our development projects by scoping highest and best use projects on our land bank."
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