The National Corporation for Tourism and Hotels (NCTH) in Abu Dhabi saw its profits from hotel operations fall by 12% in the first half of this year, due to a drop in revenues and increase in costs.
Chaired by H.H Sheikh Hamdan Bin Mubarak Al Nahyan, the company owns Intercontinental Abu Dhabi and through its Danat Hotels & Resorts division, operated properties including Tilal Liwa Hotel, Al Raha Beach Hotel and Sands Hotel.
According to its financial statements for the first half of the year, filed with Abu Dhabi Securities Exchange, its operating revenues in its hotels segment were AED148.4 million (US $40.4 million) in the six months to the end of June, down 2.5% on the same period in 2013.
With cost of services up 2.9% to AED82.6 million (US $22.5 million) and depreciation stable at AED21.8 million (US $5.9 million), profits were down from AED50 million (US $13.6 million) to AED44 million (US $12 million).
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At the end of the period, the company had AED47.8 million (US $13 million) in operating liabilities. However this does not include a further AED10.7 million (US $2.9 million) authorised for ongoing hotel projects.
Last month, it was confirmed that NCTH had signed a 20-year management agreement with IHG for a second Intercontinental property in Abu Dhabi.
Intercontinental Abu Dhabi – Grand Marina will feature 184 rooms and serviced apartments and is set to open in 2016.
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