Gulf Hotels B S C : Click here to view the Annual Report 2023 (English)

1. Resilient Path for Growth

2023 ANNUAL REPORT

His Majesty King	His Royal Highness
Hamad bin Isa	Prince Salman bin Hamad
Al Khalifa	Al Khalifa
The King of the	The Crown Prince and
Kingdom of Bahrain	Prime Minister

www.gulfhotelsgroup.com

CONTENTS

1. Corporate Overview

1. Chairman Statement
2. Group CEO Statement

1. Board of Directors

1. Executive Management

1. Group Portfolio

1. Restaurants

1. Awards

CONTACTS

Gulf Hotels Group B.S.C. - Head Office Gulf Executive Offices Building

10th floor, Office 1001 Road 3801, Block 338 Manama - Kingdom of Bahrain

T [phone]

F [phone]

E [e-mail]

www.gulfhotelsgroup.com

Gulf Hotels Group B.S.C
CORPORATE OVERVIEW	ةـــكرــشلا نــع ةذبن

www.gulfhotelsgroup.com

Enriching Experiences, Empowering Growth.

Gulf Hotels Group was founded in 1969 and has since grown into a highly respected and well-established hospitality brand. The company's journey began with its first property, Gulf Hotel Bahrain, which quickly gained popularity and set the foundation for future growth.

Over the years, the Gulf Hotels Group has expanded its portfolio, acquiring, and developing properties across the Kingdom and the Gulf region.

The Group operates under a robust corporate structure, ensuring effective management and operational efficiency. The company is led by a dedicated executive team, comprising experienced professionals who bring diverse expertise to the table. The executive team is responsible for setting the strategic direction of the group and overseeing its overall operations.

Gulf Hotels Group is committed to continuous growth and innovation. The company has implemented several strategic initiatives to enhance its competitiveness and expand its market reach. These initiatives include:

1. Renovation and Expansion: The group regularly invests in renovating and expanding its existing properties to ensure they meet the evolving needs and preferences of guests. By enhancing facilities and adding new offerings, the Gulf Hotels Group
   stays ahead of the competition and maintains its reputation for excellence.
2. Sustainability and Environmental Stewardship: Recognizing the importance of sustainable practices, the Gulf Hotels Group has implemented various environmental initiatives across its properties. These include energy-efficient measures, waste management programs, and community engagement activities aimed at minimizing the group's environmental footprint.
3. Technology Integration: To provide a seamless and convenient guest experience, the Gulf Hotels Group leverages technology in its operations. This includes online booking platforms, mobile check-in and check-out services, and personalized guest communication tools. By embracing digital innovation, the group enhances operational efficiency and guest satisfaction.
4. Employee Development: The Gulf Hotels Group recognizes that its employees play a crucial role in delivering exceptional service. The company invests in training and development programs to nurture talent and empower its workforce. By fostering a culture of continuous learning and career growth, the group ensures a motivated and skilled staff that can exceed guest expectations.

The Gulf Hotels Group is a prominent player in the local and regional hospitality industry, known for its luxurious properties, exceptional service, and commitment to sustainability. With a strong corporate structure and a focus on strategic initiatives, the group continues to expand its footprint and maintain its position as a preferred choice for travelers in the region. As the company looks to the future, it remains dedicated to providing memorable experiences and setting new benchmarks in the hospitality sector.

براجتلا ءارـــــثإ

.وــــمـــنلا خيسرتو

كلذ ذنم تنمو 1969 ماع في جيللخا قدانف ةعوممج تسسأت

.ةفايضلا لامج في ةخسارو ةقومرم ةيراتج ةملاع حبصتل ينلحا ،نيرحبلا جيللخا قدنف ،لولأا اهقدنف عم ةكرشلا ةلحر تأدب

.يلبقتسلما ومنلل ساسلأا عضوو ةعيرس ةرهش بستكا يذلا

،ةيرامثتسلاا اهتظفمح عيسوتب جيللخا قدانف ةعوممج تماق ،يننسلا رم ىلع

.جيللخا لودو ةكلملما في تاراقعلا ريوطتو ءارشب تماق ثيح ةءافكلاو ةلاعفلا ةرادلإا نمضي امم ،يوق يسسؤم لكيه لظ في ةعوملمجا لمعت ةبرخ يوذ ينفرتمح مضي ،صصختم يذيفنت قيرف ةكرشلا دوقيو .ةيليغشتلا هاتجلاا ديدتح ةيلوؤسم يذيفنتلا قيرفلا لىوتي .ةعونتم تابرخ نومدقي

.ةلماشلا اتهايلمع ىلع فارشلإاو ةعومجملل يجيتارتسلاا ديدعلا ةكرشلا تذفن .راكتبلااو رمتسلما ومنلاب جيللخا قدانف ةعوممج مزتلت لىإ الهوصو قاطن عيسوتو ةيسفانتلا اتهردق زيزعتل ةيجيتارتسلإا تاردابلما نم :تاردابلما هذه لمشتو .قوسلا اهقدانف عيسوتو ديدتج في ماظتناب ةعوملمجا رمثتست :ةعسوتلاو ديدجتلا .1

قفارلما زيزعت للاخ نمو .فويضلا تاجايتحا بيلت انهأ نم دكأتلل ةيلالحا ةسفانلما ةرادص في جيللخا قدانف ةعوممج لظت ،ةديدج ضورع ةفاضإو

.زيمتلا في اهتعسم ىلع ظفاتحو

تماق ،ةمادتسلما تاسراملما ةيهملأ اًكاردإ :ةيئيبلا ةياعرلاو ةمادتسلاا .2

.اتهاكلتمم برع ةيئيبلا تاردابلما نم ديدعلا ذيفنتب جيللخا قدانف ةعوممج ،تايافنلا ةرادإ جماربو ،ةقاطلا مادختسا ةءافك يربادت يربادتلا هذه لمشتو

.ةعومجملل ةيئيبلا ةمصبلا ليلقت لىإ فدته تيلا ةيعمتلمجا ةكراشلما ةطشنأو ديفتست ،فويضلل ةيحرمو ةسلس ةبرتج يرفوتل :يجولونكتلا لماكتلا .3

تاصنم كلذ لمشيو .اتهايلمع في ايجولونكتلا نم جيللخا قدانف ةعوممج

.لوملمحا فتالها برع ةرداغلماو لوصولا ليجست تامدخو ،نيورتكللإا زجلحا ةءافكلا زيزعت ىلع ةعوملمجا لمعت ،يمقرلا راكتبلاا نيبت للاخ نمو

.فويضلا اضرو ةيليغشتلا

اًرود نوبعلي اهيفظوم نأ جيللخا قدانف ةعوممج كردت :ينفظولما ريوطت.4 بيردتلا جمارب في ةكرشلا رمثتستو .ةيئانثتسا ةمدخ يمدقت في اًسماح زيزعت للاخ نمو .اهيدل ةلماعلا ىوقلا ينكتمو بهاولما ةياعرل ريوطتلاو ينفظوم دوجو ةعوملمجا نمضت ،يفيظولا ومنلاو رمتسلما ملعتلا ةفاقث

.فويضلا تاعقوت زواتج مهنكيم ةرهمو ينسمحتم ،ةيميلقلإاو ةيللمحا في ةفايضلا ةعانص في اًزراب اًبعلا جيللخا قدانف ةعوممج دعت

.ةمادتسلااب اهمازتلاو ةيئانثتسلاا اتهامدخو ةرخافلا اهقدانفب ةفورعم يهو لصاوت ،ةيجيتارتسلاا تاردابلما ىلع زيكرتلاو يوقلا يسسؤلما لكيلها لضفبو لضفم رايخك اهتناكم ىلع ظافلحاو اهدوجو قاطن عيسوت ةعوملمجا ةمزتلم لظت انهإف ،لبقتسلما لىإ ةكرشلا علطتت امنيبو .ةقطنلما في نيرفاسملل

.ةفايضلا عاطق في ةديدج يرياعم عضوو ىسنت لا براتج يرفوتب

BRAND MISSION

Our purpose is to provide first class facilities and services by delivering the best standards, offering warm, friendly hospitality and ensuring the highest levels of customer satisfaction with the aim of diversifying the group's activities and expanding its portfolio.

ةعومجلما ةلاسر

لضفأ لىع دماتعلااب تلايهستلاو تامدخلا ىقرأ ميدقت لىإ فدهن بسكو ءلامعلا ضىر نماضو ةفايضلا نسح لفكت يتلا يرياعلما

.اهدراوم ةيمنتو ةعومجلما ةطشنأ عيونت رابتعلاا في نيذخآ مهتقث

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Gulf Hotels Group B.S.C

www.gulfhotelsgroup.com

CHAIRMAN STATEMENT

On behalf of the Board of Directors, I have the pleasure of submitting the Annual Report and Financial Statements of the Gulf Hotels Group BSC, for the year ended 31st December 2023.

2022 had seen a strong bounce back from the Covd-19 pandemic period with both the hospitality and retail divisions enjoying strong growth in 2022 and that continued in 2023 with a growth rate of 6% in the total income over the last year.

RESULTS

• Total income BD 38,017,537
• Net Profit amounted to BD 6,785,586.

The increase in group's income of BD 2.130 million or 6% against last year is attributed to the revenue from Novotel Al Dana Resort of BD 1.488 million which was acquired during 2023 in addition to the increase in revenue from other group's business units which, resulted in a net profit of BD 6.786 million vs. BD 6.669 million in 2022; such profit was also achieved by an increase in dividend income of BD 223K, increase in interest income by BD 168K and increase in rental and other income by BD 521K. On the other hand, operation expenses have increased proportionately by BD 2.402 million with the increase in revenue, the interest expenses decreased by BD 77K from the previous year and depreciation reduced by BD 313K.

Despite BD 2.130 million increase in total income 5.9% over the 2022, the total expenses increased by 6.9% to BD 2.013 million compared to 2022 resulting in 1.7% increase in profit for the year of BD 117K than the previous year. There was a gain on sale of property and equipment booked in 2022 amounting to BD 819K vs. BD 5K in 2023.

PROPOSED APPROPRIATIONS

Considering the positive financial results achieved by the company and keeping in mind the Group's financial commitment towards funding the planned projects in 2024, the Board of Directors are pleased to recommend for the approval of shareholders the following appropriations:

• Dividend of 25% (BD 5,649,872) equal to 25 fils per share.
• Board of Director's remuneration BD 201,000.

FUTURE PROSPECTS

The Group will continuously explore new business opportunities to grow our portfolio in Bahrain and the Gulf region. We have identified Saudi Arabia as our key market for expansion. We see great potential in the Saudi Arabian hospitality market in line with the Saudi Vision 2030 initiative, which aims to transform Saudi Arabia into a global tourism destination. Gulf Hotels Group is well equipped to provide a wide range of hospitality services in this dynamic market.

In Bahrain, we have plans to expand our food and beverage offerings including the development of multiple premium restaurants in Adliya and the expansion of our homegrown award-winning restaurants outside the hotel. In addition, the group is committed to deliver exceptional guest experiences across our hotels and restaurants by focusing on renovating our hotels, improving our facilities, introducing innovative technologies, and more.

Acknowledgments

On behalf of the Board of Directors of Gulf Hotels Group, I would like to express our sincere gratitude and appreciation to H.M. King Hamad Bin Isa Al Khalifa, HRH the Crown Prince and Prime Minister Salman Bin Hamad Al Khalifa, the Ministers, Undersecretaries, Directors, and Heads of Government Departments, for the immeasurable interest, guidance, and encouragement accorded to Gulf Hotels Group.

We extend the same sentiments to our clients, patrons, and most of all, the people of Bahrain. We thank you for your continued support, trust, and confidence as we strive for progress.

The success of the Company would not have been possible without the hard work and dedication of the Company's management and staff. The Board of Directors joins me in revealing our appreciation to the entire Gulf Hotels Group Management Team under the guidance of Ahmed Janahi, Group Chief Executive Officer. We also thank the management and all our divisions' employees who have worked tirelessly to produce the best possible results.

We are privileged to have such a committed and capable team and are confident that this team will continue to generate the best possible results in the future.

Mr. Farouk Almoayyed

Chairman

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Gulf Hotels Group B.S.C

www.gulfhotelsgroup.com

GROUP CHIEF EXECUTIVE OFFICER STATEMENT

We are committed to strengthening our foundation for the future through adopting fresh perspectives on how we manage our business and taking a proactive approach to improve the performance of our assets.

As I took the helm as Group Chief Executive Officer on 1st October 2023, I brought with me nearly eight years of experience on the Board of Gulf Hotels Group and the distinct privilege of leading a renowned hospitality management company with over 50 years of industry experience and the backing of strong shareholders. This unique combination presents endless opportunities for the future, and I am filled with enthusiasm as we embark on this journey toward even greater heights.

The past year saw the Gulf Hotels Group persistently achieve progress. The global hospitality industry continued its post- pandemic recovery and Bahrain's tourism sector witnessed positive signs. Key performance indicators like occupancy, average daily rate, and revenue per available room showed improvement. However, the path ahead was not without its obstacles. Oversupply within the Bahrain hospitality market, regional competition, and rising operational costs presented challenges that demanded strategic navigation.

Despite these headwinds, the Group delivered positive financial results for 2023, marked

by increased revenue and profitability. The Group achieved a revenue of BD 38.052 million, a year-on-year improvement of 6%, and a net profit of BD 6.865 million grew by 2% compared to the previous year. Food and Beverage continued to be the highest revenue contributor to the group, accounting for 57% of total revenue.

Looking ahead, I am confident that 2024 will materialize new and exciting opportunities. We are in the process of developing our business strategy and the group's five-year business plan with the objective of maximizing long-term shareholder value, optimizing the performance of our portfolio, accelerating our business growth and solidify our position in Bahrain and the Gulf region.

As part of our ongoing organizational transformation, we are committed to strengthening our foundation for the future through adopting fresh perspectives on how we manage our business and taking a proactive approach to improve the performance of our assets. Our goal is to drive and unlock growth and profitability for the group. We recognize the importance

of actively overseeing and enhancing the performance of each asset within our portfolio. This effort will enable us to capitalize on growth opportunities and drive long-term success.

In line with our ongoing efforts to enhance asset performance and strategic alignment, we have implemented a Balanced Scorecard framework across our business units which represents a holistic approach to performance management, encompassing financial, customer, internal process, and learning and growth perspectives. This framework will enable us to evaluate performance not only in terms of financial outcomes but also in terms of customer satisfaction, operational efficiency, innovation, and employee development. We are confident that this

will unlock new growth opportunities and deliver enhanced value to our shareholders by empowering our teams to focus on the key drivers of success in their respective areas.

In terms of our growth strategy, we have identified Saudi Arabia as our priority market for expansion, the largest economy in the Arab world. Leveraging our established reputation, we will acquire, develop and manage properties across key cities like Riyadh, Jeddah, Makkah, and Madinah. This expansion will be fuelled by partnerships with local investors and developers, encompassing hotels, branded residences, and world-class restaurants.

Within Bahrain, work continues in expanding our brands by offering management services across 4- and 5-star hotels. In the restaurant business, we are passionate about elevating the culinary scene in the Kingdom, and our recent partnership with "Solutions Leisure" Group will shake up the culinary scene through a multi-brand expansion, set to bring a wave of innovative food and beverage concepts to Block 388, the heart of Adliya's vibrant dining district. We look forward to introducing exciting and innovative dining concepts to Bahrain and enhancing our guests' experience. In 2024, we will also be expanding our homegrown restaurants outside the hotels in various locations within Bahrain as well as launching exciting additions to our portfolio of premium restaurants across our hotels. In addition, we have launched China Garden in Al Liwan in Hamala the

Northern Governorate, our first venture outside the hotel sector. This new addition showcases our commitment to diversifying our offerings and expanding into different segments of the market.

Meanwhile, we are fully focused on enhancing guest experiences and customer needs across all our hotels and restaurants. We have a lot of exciting plans to continue to improve our offering over the next few years. This encompasses investing in our properties to maximise income, guest experiences, and operational efficiency.

We have developed detailed refurbishment plans and capital expenditure allocation for major renovation projects in 2024. This includes refurbishment of our iconic hotel, The Gulf Hotel Bahrain to bring a fresh new look and feel. This inspired project has taken careful planning and consideration to deliver best-in- class comfort and taste whilst retaining the unique essence of the hotel's great history and heritage. The project will be implemented in a phased approach with a greater focus on rooms, lobby area, entrance, amenities and technology and digital tools.

There are also some great developments and investments been made in various projects including renovation of our authentic Japanese restaurant "Sato" at the Gulf Hotel and extension of Typhoon lounge, development of multi-award-winning beach club and restaurant at the Novotel Al Dana Resort and refurbishment of the Conversion Centre at the Crowne Plaza Hotel.

Lastly, I would like to express my sincere gratitude to the Chairman and Board of Directors for their unwavering trust and support. I am also incredibly thankful to our entire team for their devotion and hard work, which has been instrumental in our success. Together, we are poised to write a new chapter in the illustrious history of Gulf Hotels Group, one filled with innovation, excellence, and exceptional guest experience, and another to maximize the return to our shareholders.

Ahmed M. Janahi

Group Chief Executive Officer

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Gulf Hotels Group B.S.C	www.gulfhotelsgroup.com
BOARD OF DIRECTORS	ةرادلإا سلمج ءاضعأ

Farouk Yousuf Almoayyed	Fawzi Ahmed Kanoo
Chairman of the Board	Vice Chairman

Khalid Mohamed Kanoo	Olivier Harnisch	Hesham Khonji	Adel Husain Al-Maskati
Director	Director	Director	Director

Zain Al Amer	Mohamed Jassim Buzizi	Jassim Hasan Abdulaal	Andrew J. Day
Director	Director & Advisor to the Chairman & Business Development	Director	Director
	Consultant

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Gulf Hotels Group B.S.C	www.gulfhotelsgroup.com
EXECUTIVE MANAGEMENT	ةيذيفنتلا ةرادلإا ءاضعأ

Ahmed M. Janahi

Group Chief Executive Officer

Mohamed Al Kayed

Deputy Chief Executive Officer

Charbel Sarkis	Shaheed Elaiwi	Shuvendu Bakshi	Amit Puri
Chief Financial Officer	Director of Finance & Board Secretary	Director of Projects	Director of Human Resources & Development

Roshan Tennakoon	Fatima H. Bahlool
Technical Services Director	Director of Marketing Communications & PR

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Gulf Hotels Group B.S.C

EXECUTIVE MANAGEMENT

(Continued)

The Gulf Hotel Bahrain Convention & Spa

Hameed Ali	Sunuj Deen
General Manager	Director of Food & Beverage
Mahmood Mukhtar	Ibrahim Ahmed
Deputy General Manager	Director of Front Office
Shafqat Mahmood	Stephen Daniel
Financial Controller	Director of Business
	Development & Strategy

Contact
T [phone]	F [phone]	E [e-mail]

Gulf Brands International

Travis Thompson	Jack Booth
General Manager	Head of Home Shopping
Balakrishnan Malattiri	Rajan Mathur
Financial Controller	Procurement Manager

Contact

T [phone] E [e-mail]

Website gulfhotelbahrain.com

Website gulfbrandsinternational.com

www.gulfhotelsgroup.com

EXECUTIVE MANAGEMENT

(Continued)

The K Hotel - Bahrain
Hussain Al Samahiji	SallyAnn Abreu
General Manager	Asst. Director of Sales & Marketing
Syam Krishnan	Jimmy Mathew
Financial Controller	Chief Engineer
Ekaterine Usanetashvili	Mohammed Qaed Askar
Food & Beverage Manager	Chief Security

			* management agreement ended November 2023
Contact				Website
T [phone]	F [phone]	E [e-mail]		thekhotel.com

Gulf Court Hotel Business Bay - Dubai

Frederic Gitzner	Djamel Guermit
General Manager	Revenue Manager
Muhammed Fairos	Austine Obare
Financial Controller	Front Office Manager
Ibrahim Abdulla	Suchismita Ghosh
Human Resources Manager	Director of Sales & Marketing

Contact				Website
T [phone]	F [phone]	E [e-mail]		gulfcourthotelbusinessbay.com

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Gulf Hotels Group B.S.C

EXECUTIVE MANAGEMENT

(Continued)

www.gulfhotelsgroup.com

EXECUTIVE MANAGEMENT

(Continued)

Crowne Plaza Hotel - Bahrain

Charbel Hanna	Farid Ismayilov
General Manager	Rooms Manager
Amit Kumar	Sara Alnajjar
Financial Controller	Asst. HR Manager
Kawthar Lanbari
Director of Sales

Ocean Paradise Resort & Spa - Zanzibar

Bernd Brandt	Satish Shetty
General Manager	Information Technology Manager
Raju Yaka	Antonie Du Preez
Financial Controller	Sales & Marketing Manager
Scott Anderson	Venkat Rao
F&B Manager	Chief Engineer
Contact	Website
T +255 77 44409901995	oceanparadisezanzibar.com

Contact
T [phone]	F [phone]	E [e-mail]
Gulf Hotel Laundry Services
Mohamed Al Ekrawi		Sadiz Iyadorai
Business Development Manager	Laundry Manager

Justin Antony

Chief Accountant

Contact

T [phone] / [phone] E [e-mail]

GHG Colombo

Rahul Kashyap	Patrick Gregory
Business Development Director	Director of Sales

Contact

T [phone] E [e-mail]

Website www.crowneplazabahrain.com

Website ghgcolombo.com

Asdal Gulf Inn Boutique Hotel - Bahrain

Kumar Ashwani		Arif Hussain Sadekar
General Manager		Senior Sales Manager
Hitesh Kumar		Fazul Haque
Chief Accountant		Sous Chef
Zahra Umali		Abhijit Bhowmick
Human Resources Business	Multi Outlet Manager
Partner
Contact
T [phone]	F [phone]	E [e-mail]
Novotel Bahrain Al Dana Resort
Amid Yazji		Mohamed Abbas
General Manager		Talent & Culture Manager
Muhammad Sohail Jamil	Mustafa Saad
Director of Finance	Revenue & Distribution Manager
Khalil Ghanem		Sami Rabah
Director of Operation	Food & Beverage Manager
Contact
T [phone]	E [e-mail]

Website asdalgulfinn.com

Website

https://all.accor.com/hotel/3600/index.en.shtml

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