Action Hotels reports 47% profit increase

Owner, developer and asset manager of three- and four-star hotels in the Middle East and Australia, Action Hotels, has reported US $2.8 million net profit for 2015.

Action Hotels released its audited full year financial results for 2015 indicating year-on-year growth in all key financial performance indicators, including revenue, EBITDA, net profit and net asset value.

The company statement noted the completion of its 10th and largest hotel, and the addition of new hotels taking the total room count at year end to 1,928, a 30% increase from last year.

Action Hotels chief executive officer Alain Debare said: “2015 has been another successful year of delivering growth to our shareholders. We opened new hotels and added more projects to the pipeline whilst overseeing strong performances from our existing profitable operating hotels.”

He added: “Our focus continues to be the delivery of our pipeline of hotels on time and on budget. We expect to deliver a further three hotels this year, taking the total for 2016 to five new hotels in one year.”

Action Hotels reported an increase in net asset value per share of 5% to USD 1.40 (2014 US $1.32).

Occupancy on mature hotels on a like-for-like basis increased to 79.3% (2014: 78%).

The company’s pipeline includes a further six hotels plus three plots of investment land, taking total room count to a minimum of 2,650 by 2018.

Strong performance was recorded in its Kuwait hotels with ibis Salmiya and ibis Sharq achieving an average occupancy of 89.5%.

Premier Inn Sharjah, which opened in August 2015, is delivering an average occupancy for Q1 of 79% whilst the 304 room ibis in Bahrain is achieving occupancy of 60.6% for the first quarter of 2016.