15/05/2026 05:29 AST
GULF Hotels Group (GHG) yesterday announced its financial results for the first quarter of 2026.
The company has achieved net profit for the first quarter 2026 of BD1.15 million compared to net profit of BD2.45 million for the first quarter 2025, with a decrease of BD1.30m or 53pc. This decline was primarily driven by the impact of regional geopolitical tensions.
Earnings per share are 5 fils compared to 11 fils in the first quarter of last year.
Total comprehensive income of BD1.08m in Q1-2026 is a decrease of BD1.46m or 57pc when compared with BD2.54m for the first quarter of the previous year.
Revenue for the first quarter is BD6.82m, compared to BD8.61m for the same period last year, with a decrease of BD1.79m or 21pc.
The total equity (excluding minority interests) for the period ended March 31, 2026 was BD105.69m compared to BD110.25m for the year ended December 31, 2025, with a decrease of BD4.56m representing 4pc.
The total assets for the period ended March 31, 2026 reached BD111.19m compared to BD116.98m for the year ended December 31, 2025, with a decrease of BD5.79m representing 5pc.
Commenting on the group's financial performance for the first quarter of 2026, GHG Chairman Fawzi Kanoo said: "The tourism and hospitality sector in Bahrain continues to play a pivotal role in supporting the national economy, underpinned by the sustained policy direction and oversight of the kingdom's leadership. The strategic vision of His Majesty King Hamad bin Isa Al Khalifa, together with the continued guidance of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, remains instrumental in reinforcing sector stability and sustaining its contribution to economic activity."
He added: "The group delivered a strong start to the quarter; however, performance was subsequently impacted by the spillover effects of ongoing regional conflict and heightened geopolitical tensions. These developments weighed on travel demand across Bahrain and the wider GCC, resulting in lower hotel occupancy levels and increased operating costs. In addition, the Iranian attack on one of the group's properties, Crowne Plaza Bahrain, on March 1, 2026, caused significant structural damage and led to the temporary closure of the hotel, resulting in revenue loss and a direct impact on operational performance during the period."
Mr Kanoo further said: "Despite these headwinds, the group maintained positive results and delivered solid profitability in the first quarter. This performance reflects disciplined cost management and continued gains in operational efficiency, supporting earnings resilience.
Looking ahead, we remain cautiously optimistic about the outlook for Bahrain's tourism and hospitality sector, supported by ongoing government initiatives aimed at strengthening the industry. The group will continue to focus on enhancing operational efficiency, capitalising on growth opportunities, and further diversifying revenue streams, with the objective of maximising returns and delivering sustainable long-term value to shareholders."
Meanwhile, Ahmed Janahi, chief executive officer of GHG, said: "The results point to a steady start to the year, with the group maintaining a broadly stable operating performance despite a more challenging external environment. This was supported by disciplined cost management and a continued focus on operational efficiency."
He added:" The operating environment grew more challenging from late February, as geopolitical tensions across the region weighed on travel sentiment, resulting in softer occupancy levels and a slowdown in tourism activity, placing near-term pressure on the hospitality sector. The group reported a net profit of BD1.15m for the quarter, reflecting tight cost control, efficient execution at the property level, and the strength of our diversified portfolio. We have also continued to expand our strategic partnerships, supporting our presence across key markets while enabling measured, sustainable growth under a clear operating model."
Mr Janahi added: "Building on this momentum, we are moving ahead with our agreement with Burhan Hotels to manage and operate three hotel properties in Mecca, representing close to 1,000 rooms. This marks a significant step in strengthening the group's position as a third-party operator in one of the world's most important religious tourism markets. In parallel, the launch of Gulf Catering as a dedicated platform for catering and hospitality services, alongside new partnerships, including with Royal College of Surgeons in Ireland (RCSI)-Bahrain, further broadens the group's revenue base and extends its reach into institutional catering, particularly within the education sector.
"Going forward, we remain supported by a strong financial and operational base, and focused on enhancing efficiency across our portfolio, strengthening our market position, and advancing growth both locally and regionally, with a clear emphasis on delivering sustainable, long-term value to our shareholders."
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