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Summary
- Group revenues challenged in the face of general market trends although proved resilient due to the benefits of portfolio diversification.
- System RevPAR declined by 18%; 14% on a currency neutral basis.
- Effective profit protection measures and rigorous cost control enabled growth in KHI EBITDA.
- Reported net profit impacted by weaker results at Four Seasons in Paris and Cairo as well as reduced ancillary real estate sales and previously reported impairment charge.
- Balance sheet remains conservatively leveraged with a net debt to equity ratio of 11% and $344.7m cash on hand as at 30 June.
- Significant progress in portfolio rationalization delivered a total $87.1m in sale proceeds and a corresponding gain of $37.5m.
- Development pipeline remains on track and on budget.
Commenting on the results Sarmad Zok, Chief Executive Officer, said:
"Our determination to drive profitability across our wholly owned hotel operations has paid off and they remain cash generative. Our cost control initiatives have contributed to an increase in EBITDA. Trading, however, is still tough across the wider portfolio but we don't expect the rate of deterioration to get any worse."
Zok added, "We have also made strong headway with our rationalization and value realization strategy generating $87m in disposal proceeds. Our development programme is on schedule and fully funded. And we are proud that KHI has one of the strongest balance sheets in our sector."
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Posted by Siba Sami Ammari
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