Aldar profits up as hotel occupancy rises in Q3
Strong growth in revenues and profits for owner of Yas Island hotels
Abu Dhabi’s largest property company, Aldar Properties, has reported a net profit of AED 584 million (US $158.9 million) for the third quarter 2014, an increase of 41% on the same period in 2013.
Aldar, which has 2536 hotel keys in total, 2259 of which are situated on Yas Island, saw it revenues during the quarter rise 17% to AED1.37 billion (US $373 million).
Occupancy levels at its hotels crept up one percentage point to 74% in the third quarter, while in the first nine months of the year it was up six percentage points to 79%, ahead of the Abu Dhabi average of 73%.
The company’s overall increase in revenues was mainly due to the sale of B2 Tower, the handover of units at Gate Towers as well as increased recurring revenue streams.
Recurring revenue in the third quarter was AED 526 million (US $143.21 million), reflecting an increase of 12% over the same period last year.
This increase was primarily driven by strong leasing activity during the period at Al Rayanna and The Gate Towers which are now fully let, a year ahead of schedule.
Revenue for the nine months to 30 September 2014 was AED 5.28 billion (US $1.44 billion), compared to AED4.06 billon (US $1.11 billion) during the same period in 2013.
“This has been a strong quarter that clearly demonstrates the effectiveness of our strategy. Our recurring revenue assets continue to grow, especially with Yas Mall coming on stream and we are well on our way to achieving our recurring income target," said Mohammed Khalifa Al Mubarak, chief executive officer of Aldar Properties.
"This will help smooth out bottom line earnings and underpin our business as we commence a new wave of development projects, which include those announced earlier in the year and a number to be launched over the coming quarters.”
The company recently revealed to Hotelier Middle East that it is exploring the possibility of acquiring hotels in Dubai.
Its portfolio currently includes Yas Viceroy, Tilal Liwa Hotel, Yas Crowne Plaza and Hala Arjaan.