ADNH annual General Assembly announces profits of AED 237.6 million for 2004

Headed by His Excellency Khalifa Nasser Bin Huwaileel Al Mansoori, Chairman of ADNH, the meeting was attended by board members and senior management from ADNH Group and its shareholders.

The Chairman welcomed the distinguished guests and dignitaries, and said: "On behalf of the board, I am pleased to extend my gratitude to HH Sheikh Khalifa Bin Zayed Al Nahyan, the President of the UAE and to HH Sheikh Mohammed Bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi, for their patronage and support of Abu Dhabi National Hotels."

In his key speech, The Chairman also stated that the prudent economic and social policies pursued by the UAE continue to have a positive effect on the development of the company. He stressed that the inception of the Abu Dhabi Tourism Board and launch of Etihad Airways have been a significant boost to Abu Dhabi's travel and tourism sectors.

The Annual General Assembly ratified the company's financial report for 2004, which showed AED 237.6 million in profits, an increase of 13 per cent compared to 2003.

The basic return per share reached AED 7.92 compared to AED 7.01 in 2003. Total shareholders' equity reached AED 1,729 million compared to AED 1,332 million in 2003, representing a healthy 30 percent growth.

The company reported that during 2004 they saw excellent performances from their hotels and at the same time continued many of the ongoing hotel renovation projects, notably at the Hilton Hotel, Abu Dhabi that included the opening of the new Italian restaurant, BiCE. The companies 5 star hotel properties achieved a growth in profits of 27% despite the adverse impact on the results of the Hilton renovation. A strong trend in new leisure business was, as an example, strongly demonstrated at the Meridien Hotel Abu Dhabi, which saw leisure room nights grow in 2004 by over 100%. ADNH reported that they witnessed similar trends in a number of their properties, many of which operated at almost full capacity for the year. The occupancy at Al Diar hotels reached 90 per cent, which help generate a 40 per cent growth in profits for this division.

The other ADNH business, including its catering division ADNH/Compass performed well in 2004 and delivered profits over expectations and consequently total profit from the company's operating divisions grew by over 10%. Income from the overseas investment holdings generated good returns, in line with expectations, and these returns added to an excellent result from the outstanding increase within the locally held UAE share portfolio meant that non-operational profit grew by over 50%.

His Excellency Khalifa Nasser Bin Huwaileel Al Mansoori said, "I would like, on behalf of the directors, to thank our shareholders for their ongoing support and trust; the many authorities both public and private; and our management and staff who contribute to the success of Abu Dhabi National Hotels."