Abu Dhabi hotels group nets Dh1b in Q1 profit

A year ago, the company’s profit stood at Dh148m

Abu Dhabi National Hotels sure did not hold back on its net profit surge. The company, bolstered by a series of deals, posted a substantial first quarter net profit of Dh1.02 billion, up from just Dh148 million a year ago.

This was brought on by recognising fair value gains on its equity interests to the tune of Dh916 million. This was from the acquisition of the UK entity Compass’ stake in the hospitality services joint venture ADNH Compass, for Dh227 million.

Thus, ADNH turned all three UAE entities into fully-owned subsidiaries, which then resulted in the Dh916 million fair value gain.

ADNH operates two key divisions, one around its hotels and hospitality services, and the other around transport services. The hotel side of the business had revenues of Dh386 million, and then accounted for EBITDA of Dh189 million from Dh194 million.

The segment profit before tax decreased by Dh4 million to Dh117 million. The drop was in line with anticipation.