Abu Dhabi National Hotels announces first quarter profit of AED 106.6 million

Commenting on the unaudited results released to the Abu Dhabi Securities Market, the Chairman of Abu Dhabi National Hotels, His Excellency Khalifa Nasser Bin Huwaileel Al Mansoori, said: "The company's results are an excellent beginning to the financial year, and I am delighted with the overall performance. The hotel division is delivering very good results, and the indications are that this will continue, with all our hotels operating at high occupancy levels.

"Our catering division, ADNH/Compass, has continued to grow throughout the region. We have also seen satisfactory investment returns from our overseas portfolio, and excellent performances from our local equity investments. Our unique blend of businesses have produced record profits in the first three months of 2005, exceeding our initial forecasts."

Mr. Peter Cardnell, Director General of ADNH said: "The hotel division results have been very strong, with our Al Diar hotels operating at over 90 per cent occupancy for the first quarter and average room rates improving by 20 per cent. A similar picture is seen with our portfolio of international brands.

"We are now enjoying the fruits of the investments we have made in the hotel portfolio. We are also experiencing the positive impact of Etihad Airways, and the efforts of the Abu Dhabi Tourism and Promotions Board. We have witnessed increased demand from our participation in a number of international exhibitions, particularly the bi-annual IDEX event."

Peter Cardnell added: "We have seen encouraging revenue trends in our transportation business, Al Ghazal, and in Sunshine Tours, which are servicing the growing number of visitors to the capital. Together, these divisions have enjoyed over 25 per cent profit growth for the first quarter period."