Alain Debare, Action Hotels LON:AHCG CEO said: “We are very pleased to update the market on a good first half, with a strong performance across the Action Hotels portfolio. We remain focused on driving performance at our operating hotels and our growth reflects the solid performance from our mature hotel portfolio, as well as the early success of our newest hotels. We have a good pipeline of hotels in development and are on track to complete an additional three hotels this year”
Commenting on the results, Sheikh Mubarak A.M. Al Sabah, Founder and Chairman of Action Hotels said: “It is my pleasure to announce another six months of growth for Action Hotels on the back of a very positive performance in 2015. We continue to meet the increasing demand for quality, internationally branded economy and mid-market hotels and have outperformed expectations set out at IPO with regards to the number of rooms in operating and pipeline hotels by 29%, with rooms totalling 3,184.
We remain committed to growing our portfolio and are continuously exploring new hotel opportunities on both a freehold and leasehold basis. In July we announced our partnership with AccorHotels on our first Novotel branded hotel in Dubai Health Care City, Action’s third hotel in the U.A.E and first in Dubai. We look forward to updating the market on other further developments to our pipeline in due course.”
Action Hotels plc LON:AHCG, the leading owner, developer and asset manager of branded three and four-star hotels in the Middle East and Australia, has given DirectorsTalk its unaudited results for the six months ended 30 June 2016.
Financial Highlights
-- Total reported revenue increased by 18% to $25.6m (30 June 2015: $21.7m) -- Gross Profit increased by 14% to $18.4m (30 June 2015: $16.1m) -- Adjusted EBITDA(1) increased by 18% to $7.2m (30 June 2015: $6.1m)
— Property asset values have increased by $31m to $428m since 31 Dec 2015, resulting in a net asset value (NAV) of $189m at 30 June 2016 (31 December 2015: $196 m)
-- NAV is reviewed at year end as we roll out and fair value our portfolio -- Interim dividend of GBP 0.76p, a 3% increase on the same period last year
Operating Highlights
— Strong occupancy levels at mature hotels being maintained on a like for like basis at 74.7% (30 June 2015: 76.7%)
— Exceptional operational and financial performances from the two hotels in Kuwait, ibis Salmiya and ibis Sharq, with the latter exceeding 90% occupancy
-- Average hotel breakeven occupancy across the portfolio remains low at c. 35% -- 1,928 operating rooms at the end of June, a 30% increase from H1 2015 (30 June 2015: 1,488)
— ibis Styles Brisbane, Action’s largest hotel, broke even in month 2 and grew to over 51% occupancy by June 2016
— Acquisition of a prime freehold plot of land located in Innovation Hub, within Dubai’s Media City
