(MENAFN- Muscat Daily) Companies operating in the hotel and hospitality sector had a mixed first quarter this year with some posting growth in profits and others being hurt by weakness in the euro regional unrest and increased competition.
Data compiled by ONA from reports issued by eight companies listed on the MSM showed that accumulated revenues declined to RO13.3mn from RO13.6mn in the first three months of 2014. Net profits fell by RO15000 to RO3.3mn.
Gulf Hotel Co which owns Crowne Plaza Muscat posted a RO20000 increase in revenues in the first quarter of 2015 to RO2.9mn. Expenses increased 5.8 per cent due to the hike in salaries. This resulted in a 6.1 per cent decline in operational profits and a 2.7 per cent drop in net profits which stood at RO988000 down RO27000 from a year earlier.
The company described its performance as 'satisfactory' due to market conditions. It expects occupancy rates to decline during the second and third quarter of this year due to the depreciation of the euro against the US dollar increased competition and sluggish summer activity.
Ubar Hotels & Resorts previously Interior Hotels said the first quarter was not good for the industry due to the unrest in the region. This led to a decline in the number of inbound tourists. The depreciation of the euro also made the sultanate an expensive destination for European travellers seeking popular and cheap destinations.
Dhofar Tourism Co which manages Marriot Hotel in Mirbat said its income increased by nine per cent which it attributed to the increase to contracts signed with tourism companies in Europe which operated tours to the resort. The company also made efforts in coordination with the Marriott management to enhance local and regional tourism.
Salalah Beach Co said profits declined from RO279000 to RO240000 due to the decline in revenues. The company added that it will pursue its promotion plan and take action to augment revenues.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.