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Wed 26 Aug 2009 10:26 AM

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Kingdom Hotel Investments H1 profit falls 61%

Firm, controlled by Saudi billionaire Prince Alwaleed bin Talal, says revenue down 11%.

 

Kingdom Hotel Investments said first half net profit fell 61 percent, due to weaker results at Four Seasons in Paris and Cairo, as well as lower real estate sales and an impairment charge.

 

Controlled by Saudi billionaire Prince Alwaleed bin Talal, the company also said revenues fell by almost 11 percent, to $103.3m.

 

Net profit was $8m in the period, compared with $20.6m in the first half last year.

Kingdom Hotels
, headquartered in Dubai, owns hotels managed by chains such as Fairmont Hotels, has focused its business on emerging markets such as the Middle East, Asia, and Africa.

 

The company said its development pipeline was "on track and on budget".

 

Sarmad Zok, CEO, said: “Our determination to drive profitability across our wholly owned hotel operations has paid off and they remain cash generative. Trading, however, is still tough across the wider portfolio but we don’t expect the rate of deterioration to get any worse.” (Reuters)

 

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