Dear Shareholders, For the fiscal year 2015, IFA Hotels & Resorts recorded year end revenue of KD61,906,141 (US$205,098,713), with a net profit totaling KD1,843,189 (US$6,106,594) which is 3.95fils per share.
S hare holder s’ equity in crea s e d to KD 61,099, 480 (US $ 200,935,559), while the company’s total assets reduced by 23% to KD294,321,279 (US$967,923,305) compared to KD382,082,080 (US$1,300,085,338) for 2014 due to the adaption of IFRS 15.
In last year’s report we iterated that the focus in Dubai was on solidifying our relationship with Nakheel and then extraction of value from our assets within Palm Jumeirah. To that end significant progress has been made within these assets, whether that is in the initial design phases and the revised design on plot C-17a, or with continued progression of The8.
As with previous reports, each regional CEO will describe their forthcoming plans as well as accomplishments for the financial year, I would like to outline certain areas of group performance for 2015 which underscored our approach over the last year.
2015 saw major progress within The8, construction of the development moved to the super-structure phase and key milestones were reached. Initial sales closure, whilst impacted by market conditions, continued positive sentiment in the market towards the product. Under the direction of Khaled Esbaitah, the resort has made great strides towards the targeted completion in 2017.
Hubert Viriot’s appointment as CEO of YOTEL provided focus and bore fruit with immediate effect. Yotel’s presence, through new contract signature, covers further airports in Europe as well as entrance into the South East Asia market in Singapore. The signing of YOTEL’s first hotel management agreement with Dubai Investment Properties LLC (‘DIP’) for a 565 key property in Dubai’s vibrant business hub proves that YOTEL’s brand and inimitable style of management is establishing a growing base of asset owners attuned to their unique offering.
Yotel’s further expansion into mature markets has also been an achievement of significant worth, most especially in USA which is arguably the most competitive market in the world. During 2015, Yotel secured agreements to manage close to 800 keys in San Francisco, Boston and Miami. With further pipeline properties in the MEA region, Europe and South East Asia; the metamorphosis from a fledgling airport hotel provider to a truly innovative global brand is truly promising.
2015 also saw the introduction of the first Delano branded property in the region through our partnership with Morgans Hotel Group Co. Morgans have proven reticent to enter the region, however through careful negotiation with Joe Sita and his team we were pleased to announce this key addition to our product offering in The8. Delano’s brand rests comfortably with the boutique, modernistic nature of the project and demonstrates our ability to attract renowned and iconic brands within our resort portfolio.
Talal Jassim Al-Bahar
Chairman & CEO
Ibrahim Saleh Al-Therban