Dubai-based developer Nakheel has reaffirmed its commitment to the hospitality sector after announcing a significant increase in profits in the first nine months of the year.
Up to the end of September, the company, which is behind developments including Palm Jumeirah, The World islands and Ibn Battuta Ball, recorded a net profit of AED2.6 billion (US $708 million), up 47% on the same period last year and exceeding the company’s profit for the whole of 2013.
The company said its leisure business “continued to deliver improved performance on previous years”, while it also had strong performance in its retail and leasing business.
“The company remains focussed on building cash generating assets in the retail, hospitality and residential leasing sectors to further strengthen its financial position in the future,” it added, announcing the results.
| Advertisement |
Financially, one of the key events for the company this year has been payment of its entire bank debt of AED7.9 billion (US $2.15 billion), four years ahead of time.
With the bank debt repaid early and new cash-generating assets coming on stream, Nakheel is well on course to further strengthen its business and financial position going forward,” said Nakheel chairman Ali Rashid Lootah.
“Our robust financial results reflect the growth in the real estate sector in Dubai, where Nakheel continues to play a strategic and important role. Since the financial year ending 2010, Nakheel has reported a year-on-year increase in net profit.
“Our financial performance reflects the strength of the underlying business, increasing investor trust and confidence in Nakheel and the on-going support of the Government of Dubai.”
Nakheel is currently working on a mall and tower project on Palm Jumeirah which will feature a 290-room hotel operated by Shangri-La Hotels and Resorts.
In June, the company outlined plans to add 2900 rooms over the next three years to its hospitality portfolio as it looks to mover further away from a focus on property sales.
Search our database of more than 2,700 industry companies
