The Diplomat Radisson SAS gears up for 21st century

Jean-Marc Busato, Vice President Middle East, Rezidor SAS Hospitality, said: "This agreement is a fantastic commitment to the future success of our flagship property in Bahrain. We have worked with National Hotels Company very closely for more than three years, and look forward to forging an even closer relationship as a result of managing the new property."

The landmark contract covers construction of the new 22,000 square metres hotel and serviced apartment extension, which is expected to be completed by the last quarter of 2005.

It will feature a combination of one-, two- and three-bedroomed, generously proportioned serviced apartments, and a limited number of VIP penthouse suites.

Chairman of the board of directors of the National Hotels Company (NHC), Ahmed Abdulrahman Al Zayani said the signing was both a milestone and turning point in the history of Diplomat Radisson SAS Hotel, conceived by Al Zayani himself 30 years ago.

The deal marks Larsen & Toubro's entry into Bahrain, with Al Zayani stressing he was confident that L&T would complete the project in time and on budget.

"Larsen and Toubro was chosen because of its excellent reputation in this specialised segment, and because of its involvement in this most prestigious project, it will undoubtedly win other business in Bahrain," said Al Zayani.

The company, which has an annual turnover in excess of $2.2billion, will be engaged in the civil, structural, electro-mechanical services and facades of the property.

The signing ceremony was attended by Ebrahim Abdul Aal, Chairman of Ebrahim Abdul Aal Group of Companies (the local partners of Larsen & Toubro), Mohammed Salahuddin, Chairman of Mohammed Salahuddin Consulting Engineering Bureau (architects and designer for the project), directors of NHC, and management representatives of all three parties.

Located in the heart of Manama city, the luxurious new building will be part of the major expansion project of the Diplomat Radisson SAS Hotel, which is close to Bahrain's main tourist attractions and shopping areas.

The current property features 246 spacious rooms, 19 suites, 7 meeting rooms, a business centre, some of the island's most popular restaurants and a health club.

NHC has also announced net profits of BD1.02 million for 2003. The recent annual general meeting of the company approved a dividend payment of BD 792,198, or eight per cent of the shared capital of the company.

Total assets of NHC rose to BD29.29 million at the end of 2003 compared with BD 27.99 million a year earlier. The occupancy rate of the Radisson SAS Diplomat Hotel fell from 70 per cent in 2002 to 65 per cent in 2003.

"The year 2003 was undoubtedly an exceptional year, considering the different events that took place. The war in Iraq, the spread of SARS and increased terrorist activities are events that have marked this year and adversely affected the economic activities particularly the travel and trade industry," Al Zayani said.