Abu Dhabi National Hotels announces 20 per cent profit growth for 2003

The very difficult trading conditions prevailing in the first half of the year have given way to a more encouraging picture for the company's hotels in the second half of 2003 and exceptional performance from the catering and transport divisions. Abu Dhabi National Hotels has therefore confirmed preliminary profits, subject to final audit confirmation for the year 2003 of Dhs. 210.3 million against Dhs. 175.4 million of last year, up 20%.

The Chairman of Abu Dhabi National Hotels H. E. Khalifa Nasser Bin Huwaileel Al Mansoori said "I am pleased to report that 2003 has been a very successful year for Abu Dhabi National Hotels despite the very difficult trading conditions that prevailed in the first half of the year, due to the Iraq conflict and the SARS virus concerns. A concerted effort by our management, a strong business recovery in the second half of the year and prudent investment decisions has ensured that we mitigated the impact of these circumstances on our overall results".

The Chairman went on to say, "During 2003, ADNH completed the total renovation of the Abu Dhabi Sheraton Hotel, and the chalets at Al Ain Hilton and projects at the Al Diar Mina and Al Diar Gulf Hotels. In addition, the new Hiltonia Health Club and Spa also welcomed its first guests, in this state-of-the-art facility. We have also acquired a new 450-bedroom hotel within the landmark Jumeirah Beach Residence development in Dubai that will open in 2006.
The ADNH partnership with Compass Group in catering services had a very successful year with excellent organic growth and the securing of a number of new business contracts within the region. They particularly benefited from new operations in the UAE, Egypt, Kuwait, Iraq, Lebanon and Iran.

Al Ghazal, the transportation division of ADNH recorded its best ever results in 2003. The continued concentration on quality service, a wide range of options for our customers and the modernization of the fleet have ensured excellent performance throughout the division. We have also launched at the end of the year Al Ghazal Express, our latest addition to the portfolio of transportation services offered.
Our overall investment portfolio performed very well despite the ongoing low levels of interest on our deposits. A decline in general interest income was offset by excellent results from both UAE stocks and International funds."

In concluding, the Chairman said" These excellent results and the strong financial position confirm the direction of the company for a successful future".