Released: 29/10/2009
com:20091029:Rnsc5767B
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RNS Number : 5767B
Kingdom Hotel Investments
29 October 2009
Kingdom Hotel Investments
Third Quarter 2009 Trading update
Dubai, 29 October 2009. Kingdom Hotel Investments ("KHI") today issues a trading
update for the period ended 30 September 2009.
Operating Performance
Trading remains in line with general market trends and despite the global
economic challenges KHI's hotel operations remain profitable and cash
generative.
System RevPAR for the three months to 30 September 2009 declined 9% (8% on a
currency neutral basis) and 16% (12% on a currency neutral basis) for the nine
months period, reflecting a continuation of the global economic slowdown.
On a consolidated basis the RevPAR decline was 8% during the third quarter (7%
on a currency neutral basis) and 10% year to date (9% on a currency neutral
basis. The third quarter was positively impacted by the full inclusion of
Ramadan with the Eid Al Fitr public holiday. Regional performance during the
third quarter was as follows:
* The Middle East saw a 12% RevPAR decline on a reported and currency neutral
basis. The Movenpick Beirut continued to be a very strong performer with RevPAR
expansion of 33. However, Dubai remains a challenging market with RevPAR at the
Movenpick Bur Dubai down over 46% compared to the same period last year with
weakness continuing in both occupancy and room rate.
* Sub-Saharan Africa was relatively unchanged on both a reported basis and a
currency neutral basis. In Kenya, the benefits of the renovation programme
continue to drive RevPAR which was 64% ahead of the comparative period, assisted
by a 17% increase in occupancy. Mauritius remains a weak market.
* -In Asia, RevPAR dropped 23% across the portfolio. Room rates remained weak
at the Four Seasons Langkawi and the terrorist incidents in July impacted demand
in Jakarta.
* The George V in Pariscontinued to outperform the market during the summer,
with RevPAR decline at just 4% over the three months or +0.5% on a currency
neutral basis.
Cost savings remain our focus with profit protection initiatives having resulted
in comparable EBITDA margin expansion for the hotels of 60bps to 26.4% in the
quarter compared to last year. Further, we continue to drive savings in
corporate costs and reducing sales and marketing expenses culminating in $4.5
million of lower expenditure this quarter.
Net debt at 30 September was $156 million with cash balances totaling $362
million. The resultant 13% net gearing ratio reflects the continued strength of
the Company's balance sheet.
Ancillary Real Estate and Developments
During the third quarter we delivered three Four Seasons' Private Residences in
Mauritius for a value of $12.2m for which KHI is attributed 50%.
We are scheduled to complete the construction of the Four Seasons Private
Residences at Marrakech in the first quarter 2010 and the hotel in mid 2010. We
have presold 40 of the 43 units in Marrakech and expect to commence recognizing
these sales in the last quarter of 2009.
Sales momentum continues in Manila with the sale of 4 further units during the
third quarter in addition to the 18 units sold during the first half of 2009 and
the 111 units sold in 2008.
The Four Seasons Hotel, Beirut is scheduled to open on 10th January 2010. We
have advanced construction of our developments in Accra, Manila and Seychelles.
- Ends -
Enquiries
Brunswick Group
Kate Holgate / Laura Cummings (London) +44 207 404 5959
Rupert Young / Jeehan Dahman Balfaqaih (Dubai) +971 4 365 8260
Notes to Editors
KHI, headquartered in Dubai (UAE), is the leading international hotel and resort
acquisition and development company focused on high growth emerging markets such
as the Middle East, Asia, and Africa.
The company has ownership interests in 26 properties in 18 countries including
22 operating hotels and resorts and five hotels and resorts currently under
construction or in the initial stages of development. KHI is listed on NASDAQ
Dubai and the London Stock Exchange.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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