Zara Investment : Holds its 22nd Annual Ordinary General Assembly Meeting

Zara Investment Holding Company Holds its 22nd Annual Ordinary General Assembly Meeting

Zara Investment Holding Company Holds its 22nd Annual Ordinary General Assembly Meeting

Amman, Jordan, April 27, 2016

-- Consolidated Operating Revenues of JD 71.2 million

-- Consolidated Net Operating Revenues of JD 17.5 million

-- Consolidated Net Loss of JD 1.6 million

Zara Investment Holding Company held its 22nd General Assembly meeting on Wednesday April 27, 2016, at Hotel Intercontinental Jordan in Amman. The meeting was chaired by the Chairman of the Board of Directors Mr. Sabih Masri.

Mr. Masri opened the meeting by thanking the shareholders for attending and by welcoming Mr. Ghassan Damra, representative of the Companies Controller, Mr. Bisher Bakr partner of Ernst & Young Jordan, the external auditors of the Company, and the attending press and media representatives.

Mr. Masri presented the consolidated financial results of Zara Investment Holding for the year 2015. The Chairman highlighted that the Company's consolidated operating revenues for 2015 reached JD 71.2 Million (approximately US $ 101 million), which represents a decline of 14% over the previous year; consolidated net operating revenues reached JD 17.5 million, which represents a decline of 20% over 2014, and consolidated net loss reached JD 1.6 million compared with a profit of JD 1.4 million in 2014.

Mr. Masri pointed out that throughout the previous years, Zara has managed to weather various challenges triggered by the economic and geopolitical turmoil in the region.

The meeting included question-and-answer session by the shareholders. There were inquiries about the company's plans in alternative energy for saving and clean production. Other inquiries were about the expected impact of the increased competition throughout the Kingdom in the five-star hotel category. Another question was raised about the status of the Movenpick Resort Petra (NAME???). Lina Annab, the general manager of Zara, indicated that Zara is currently embarking on one of the biggest solar energy projects in the hospitality industry in the region for electricity generation in all of its hotels in Jordan. She clarified that this 24-MW photovoltaic project is a continuation of Zara's strategy since 2008 to replace traditional sources of energy with cleaner and more sustainable alternative sources. Addressing the expected competition due to the expected increase in luxury 5-room room supply, Annab stated that the company is well prepared for this future supply. She added that the expected new developments could expand the currently unsaturated market for rooms resulting in positive outcome for all players in the market in terms of occupancy and room rates. Regarding Petra, Annab indicated that despite the drastic drop in the number of visitors to the city, the hotel's performance is satisfactory.

Due to the expiry of the term of the current board of directors, the General Assembly elected members of the board for the new term for the next session 2016 - 2020.

The meeting was concluded with the approval of the Ordinary General Assembly of the Company's consolidated financial statements, as well as with the election of Ernst & Young as the Company's external auditors for the year ending 31/12/2016.

About Zara Investment (Holding) Company:

Zara Investment Holding is a public shareholding company. Zara was established on May 10, 1994 by a group of independent investors, banks and investment companies. As of April 2015 the paid up capital of Zara Investment Holding is JD 150 million.

The hotel portfolio of Zara consists of seven 5-star hotels spread all over Jordan. Other non-core activities of the Company include owning and managing companies serving the hospitality industry.

Today Zara is the largest hospitality company in Jordan. It controls approximately 27% of Jordan's total room inventory of 5-star hotels. Zara is the largest employer in the 5-star hotel industry in Jordan. It employs approximately 26% of the total employees in the 5-star hotel category in Jordan.