Boost in Oras­com Ho­tels rev­enues in Q1 2017

Com­pany’s rev­enues in­creased by 73.9%, from EGP 284m in Q1 2016 to EGP 493.8m in Q1 2017

The Daily News Egypt - - Business - By Reem Hosam El-din

The con­sol­i­dated fi­nan­cial re­sults of Oras­com Ho­tels and De­vel­op­ment (OHD) for the first quar­ter (Q1) of 2017 have shown that the com­pany’s rev­enues were able to record a sig­nif­i­cant boost by 73.9% in the op­er­a­tional per­for­mance across all its busi­ness seg­ments. The com­pany’s rev­enues have in­creased from EGP 284m in Q1 2016 to EGP 493.8m in Q1 2017, in­creas­ing by more than the dou­ble, ac­cord­ing to the com­pany’s re­port.

The com­pany’s net profit has reached EGP 31.8m, against a net loss of EGP 96.7m in Q1 2016.“The pos­i­tive re­sults of this quar­ter so­lid­ify the suc­cess of our strate­gic plan to­wards a des­ti­na­tion-based model, which we have been steadily ex­e­cut­ing since mid-2016,” the re­port said.

The tourism sec­tor is start­ing to pick up af­ter the ease of travel bans im­posed by most Euro­pean coun­tries on Si­nai Penin­sula and Sharm El-Sheikh. In Q1 2017, the num­ber of tourists has in­creased by 51% to reach 1,738,000 compared to 1,150,715 tourists in Q1 2016, ac­cord­ing to the re­port.

As for the real es­tate seg­ment, ac­cord­ing to OHD’s re­port, it con­tin­ues its pos­i­tive mo­men­tum, record­ing a boost in net sales of 113.2%, from EGP 86.9m in Q1 2016 to EGP 185.3m in Q1 2017, in ad­di­tion to a 32.9% in­crease in rev­enues, from EGP 95.1m in Q1 2016 to EGP 126.4m in 2017.

El Gouna was the largest con­trib­u­tor to the OHD to­tal sales in Q1 2017.

In terms of the com­pany’s out­look for Q2 2017, OHD plans to ex­e­cute a new project with an ex­pected in­ven­tory of $25m in El Gouna. In Fay­oum, new prod­ucts will be launched with a to­tal in­ven­tory of EGP 60.5m.

As for ho­tels in El Gouna, the com­pany is un­der­go­ing ren­o­va­tions to upgrade the des­ti­na­tion’s po­si­tion­ing. Ad­di­tional rooms are ex­pected to be opened in Taba Heights.

OHD is the largest sub­sidiary of Oras­com De­vel­op­ment Hold­ing (ODH) and an in­te­grated de­vel­oper of re­sort towns in Egypt.

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