Abu Dhabi / Emirates Business
Abu Dhabi National Hotels PJSC (ADNH), one of the leading diversified UAE based Hospitality Company with interests in hotels, catering, transport and retail announced its preliminary financial results for the year ended December 31, 2016. During the year 2016, the company posted AED 1.3 billion in Operating revenues against AED1.38 billion in 2015.
ADNH recorded a 3% increase in net profits during 2016 amounting to AED244 million against AED237 million in 2015.
ADNHâ€™s hotel division posted AED844 million in total revenue and AED 76million in Net Profit during 2016. The Retail division generated total revenue of AED196 million and recorded as net profit of AED 79 million. The Transport division posted AED294 million in total revenue and AED35 million net profit. Share of profits from the Joint Venture – ADNH Compass catering division was AED113 million.
During the year, the Hospitality industry across the U.A.E remained under pressure and the hotels in Abu Dhabi dropped in both RevPar (Revenue per Room), ADR (Average Daily Room rate) and occupancy level in comparison to 2015.
ADNH noted that the 2016 results were achieved in a very challenging market while the city continues to experience growth in supply of number of hotel rooms and expressed its commitment to deliver excellent guest experience throughout its hotels and across all sectors while growing the shareholdersâ€™ returns.
As a result of the companyâ€™s performance in 2016, the Board recommended that a cash dividend payment for the sum of AED100 million be paid which is equivalent to 10% of the nominal value of the issued share capital.