By Andy Sambidge
Luxury hotel operator says Dubai, Egypt properties weigh on Mideast performance.
Kingdom Hotel Investments on Thursday said revenues per available room (revPAR) for the first quarter of 2010 had increased 5.6 percent, compared to the same period last year.
In the Middle East, the company, controlled by Saudi billionaire Prince Alwaleed bin Talal, said hotels in Dubai and Egypt had weighed on overall performance.
Adjusted for currency movements, Middle East revPAR remained unchanged for the three months and while the Four Seasons Damascus was a strong performer with revenue growth of 29 percent, the KHI’s hotels in Egypt and the Movenpick Dubai saw declines of 11 and 10 percent respectively.
Initial analysis indicates that the company's portfolio was broadly neutral in April to the impact of the shutdown in European air travel due to the volcanic ash cloud incident.
During the first quarter, the company generated $6 million of real estate sales, it said in a statement posted on the Nasdaq Dubai website on Thursday.
It added that construction was progressing across its development pipeline but "an external financing has posed the risk of a short delay" to its hotel completion schedule for the Marrakech project.