Abu Dhabi National Hotels Q1-2024 net profit at Dh1 billion after fair value gains

Abu Dhabi National Hotels Q1-2024 net profit at Dh1 billion after fair value gains

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Dubai: Abu Dhabi National Hotels sure did not stint on its net profit surge. The company, bolstered by a series of deals, saw its first quarter net profit weigh in with a substantial Dh1.02 billion from just Dh148 million a year ago.

This was brought on by recognising fair value gains on its equity interests to the tune of Dh916 million. This was from the acquisition of the UK entity Compass’ stake in the hospitality services joint venture ADNH Compass, for Dh227 million.

Thus ADNH turned all three UAE entities into fully-owned subsidiaries, which then resulted in the Dh916 million fair value gain. (This is split into an intangible asset by way of customer relationships (for Dh818 million) and goodwill.)

ADNH operates two key divisions, one around its hotels and hospitality services, and the other being transport services. The hotel side of the business had revenues of Dh386 million, and then accounted for EBITDA of Dh189 million from Dh194 million.

The segment profit before tax decreased by Dh4 million to Dh117 million. The drop was in line with ‘management’s anticipated temporary impact from five Dubai-based hotels’ rebranding and the impact of Ramadan during (Q1) 2024’.

Stock split

ADNH had