ADNH expects profit slump this year
Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly
Abu Dhabi National Hotels (ADNH) expects profits to slump this year due to the expansion of its asset portfolio.”The leisure market in Abu Dhabi is just not there yet,” said ADNH CEO Richard Riley.”The company expects to post a 15% decline in profit this year as it accounts for depreciation costs of its latest developments.”We’re growing in asset base,” he added. “We will have limited profitability growth over the next couple of years.”ADNH owns properties managed by Hilton and the Starwood Group (Le Meridien and Sheraton) in the UAE.Earlier this year, it opened Sofitel Jumeirah Beach Hotel in Dubai and plans to open the Park Hyatt on Saadiyat Island and the Ritz-Carlton in Abu Dhabi by June 2011.After completing the two hotels next year, the company will shift its focus to redeveloping its existing hotels before expanding and bringing more hotels to the market by 2015.”We have hotels coming on board, but we really haven’t grown the leisure side yet and that’s the issue,” said Riley.Abu Dhabi National Hotels has no immediate plans to issue bonds. “If we had to do something in the near future that may be an option for us,” he added.
Comments are closed.