Manama: Gulf Hotels Group (GHG) has reported net profit of BD 1.66 million for the second quarter of 2026 compared to a net profit of BD 2.77 million for the second quarter 2025, with a decrease of BD 1.11 million representing 40%. Earnings per share are 7 fils compared to 12 fils in the second quarter of last year.
The Group has announced its financial results for the second quarter and first six months of the year ending 30 June 2026, with total comprehensive income of BD 1.97 million compared to BD 2.56 million for the second quarter of the previous year, with a decrease of BD 0.59 million representing 23%.
“As the region navigates a period of heightened geopolitical uncertainty, the Kingdom of Bahrain has demonstrated exceptional resilience under the wise leadership of His Majesty King Hamad bin Isa Al Khalifa and the sustained efforts of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, in preserving the Kingdom’s stability, advancing its economic development, and reinforcing Bahrain’s position as an attractive investment destination. We remain confident in Bahrain’s long-term economic prospects and in the strength of its hospitality sector, which continues to benefit from government support aimed at fostering the growth of the industry,” Fawzi Kanoo, Chairman of Gulf Hotels Group, said.
“Despite the challenging market environment, I am pleased to report that the Group achieved a net profit of BD 2.81 million for the first half of 2026. Sustaining profitability under these conditions reflects the strength of our operational discipline, the resilience of our diversified portfolio, and the effectiveness of our strategic approach. Looking ahead, we remain confident in the Group’s long-term prospects and in its ability to grow through continued operational excellence, the pursuit of new opportunities, prudent capital allocation, and the further strengthening of Gulf Hotels Group’s position as a leading hospitality company. We remain dedicated to delivering sustainable, long-term value to our shareholders and stakeholders alike.”
“The first half of 2026, and the second quarter in particular, was characterized by an exceptionally challenging operating environment for Bahrain’s hospitality sector. Elevated regional geopolitical tensions had a significant adverse impact on air connectivity, traveler confidence, business activity, and tourism demand across Bahrain and the wider region. The postponement of the Bahrain Grand Prix (Formula One) meant that one of the Kingdom’s most important annual demand drivers was absent during the quarter, placing additional pressure on both the market and the Group’s performance. Compared with the first half of 2025, the market occupancy rate declined by approximately 36% from 57.3% in H1 2025 to 36.8% in H1 2026, while Revenue per Available Room (RevPAR) decreased by approximately 43%, highlighting the extraordinary scale and broad-based nature of the disruption experienced throughout the period. Our response was timely, disciplined, and strategically aligned with these prevailing market conditions. We implemented prudent cost and operational measures to reflect demand dynamics, safeguarding profitability, preserving liquidity, and ensuring the continued resilience and continuity of our operations,” Ahmed Janahi, Chief Executive Officer of Gulf Hotels Group, said.
“Despite these near-term market conditions, we have remained firmly committed to the execution of our 2026–2030 strategy, which focuses on expanding our asset-light business model and third-party hotel management platform in high-growth markets across the GCC, Africa, and the Indian Ocean region. During the period, we signed a Memorandum of Understanding with our Maldivian partner, Keiretsu Pvt Ltd, for the development of a luxury island resort in the Maldives. This marks the Group’s first investment in the Indian Ocean hospitality market, one of the world’s most prominent and established tourism destinations. We are also actively advancing several hotel management opportunities in Saudi Arabia and East Africa, with further announcements expected during the second half of 2026. In addition, the Group continued to advance its strategic expansion within the restaurant and catering operations. The opening of Takht Jamsheed at Marassi Galleria represented an important milestone in the brand’s development, while preparations for its forthcoming location at Bayfront, Khobar, progressed as planned, reinforcing the Group’s long-term objective of expanding its restaurant portfolio across the Kingdom of Saudi Arabia. Our Gulf Catering Company further strengthened its market position in Bahrain through the successful award of new contracts within the education sector, underpinned by strategic partnerships with the Royal College of Surgeons in Ireland – Medical University of Bahrain, the American University of Bahrain, and the Royal University for Women.”
“While the pace of recovery continues to be influenced by regional developments, traveler confidence, and the gradual restoration of international connectivity, our long-term strategic priorities remain unchanged. We will continue to navigate near-term market volatility with prudence and discipline, while selectively investing in opportunities that enhance and diversify the Group’s portfolio. Supported by a strong balance sheet, a diversified asset base, and a disciplined growth strategy, Gulf Hotels Group remains well positioned to successfully navigate the current operating environment and deliver sustainable long-term value to its shareholders and stakeholders.”
Revenue for the second quarter was BD 5.98 million, compared to BD 10.08 million for the same period last year, with a decrease of BD 4.1 million representing 41%.
Net profit of BD 2.81 million compared to a Net Profit of BD 5.22 million in the six months of the previous year, with a decrease of BD 2.41 million representing 46%. This decline was primarily driven by the regional geopolitical tensions experienced during the period, which adversely impacted air connectivity, travel activity, and the broader tourism sector across Bahrain and the wider region. The earnings per share are 12 fils compared to 23 fils in the six months of last year.
Total comprehensive income of BD 3.05 million compared to BD 5.1 million for the six months of the previous year, with a decrease of BD 2.05 million representing 40%. Revenue of BD 12.81 million, compared to BD 18.69 million for the same period last year, with a decrease of BD 5.88 million representing 31%. The total equity (excluding minority interests) for the period of six months ended 30 June 2026 was BD 107.65 million compared to BD 110.25 million for the financial year ended 31st December 2025, with a decrease of BD 2.6 million representing 2.4%.
The total assets for the YTD reached BD 112.56 million compared to BD 116.98 million for the financial year ended 31st December 2025, with a decrease of BD 4.42 million representing 3.8%.
