The growth of the budget and midscale hospitality sectors saw Action Hotels enjoy significant growth in revenues in the first half of the year.
Its total reported revenues increased by 28% to US $19.5 million in the six months to the end of June, a period during which revenue per available room (RevPAR) grew by 7.4% to US $89.
Meanwhile, average daily rate (ADR) increased by 10.2% to US $113, while like-for-like occupancy increased from 80% to 82%.
“We are very pleased with the continuing growth of Action Hotels in all key operational metrics. Our half-year EBITDA at US $4.6 million reflects the added investment in the resources for the Company of US $1.7 million,” said Action Hotels CEO Alain Debare.
“We have recruited additional staff in the finance and oversight of the business and have provided additional resources in the creation of dedicated asset management and project management roles during this rapid growth phase.
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“These costs have been incurred a little earlier than previously anticipated mostly due to the accelerated development of the pipeline originally anticipated at the time of our IPO. Further details about which we hope to announce to the market shortly. We do not however see any material increase to these costs for the foreseeable future.”
Among the operational highlights during the period was the successful acquisition of the land for Novotel Kuwait and a strong first six months of trading for Holiday Inn Muscat.
Action Hotels founder and chairman Sheikh Mubarak Al Sabah said the company was now ready for accelerated progress towards its goal of 5000 rooms by 2020.
"We are in advanced discussions on a number of potential new hotel opportunities on both freehold and leasehold basis and I look forward to updating the market in due course on these," he explained.
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