Action Hotels trades up as full-year results show revenue boost

Shares in Middle Eastern hotel chain Action Hotels (LONAHCG) rose in early trading on Monday, after audited results showed significant progress in both earnings before tax and revenue.

The results for the year ended 31st December 2016 showed impressive year-on-year growth in key financial performance indicators, with revenue up 22 percent to $53.1 million and EBITDA up 16 percent to $18.5 million.

Action Hotels, who specialise in developing and running branded three and four-star hotels in the Middle East and Australia, saw the opening of three new hotels across three countries in 2016. The new openings took total operational room count at year end to 2,181, a 40 percent increase on 2015 and an increase of 117 percent on their IPO.

However, the company continued to post a net loss of $6.3 million, driven primarily by the impact of costs relating to pre-opening and financing, and the depreciation of new hotels.

Commenting on the results, Alain Debare, Chief Executive Officer of Action Hotels, said:

“We remain focused on driving performance at our operating hotels and our full year results reflect the solid performance of our mature hotel portfolio, as well as the encouraging success of our newest hotels as they gain traction in their respective markets.

“We have a solid pipeline of hotels in development with the Company’s current expectation of 17 operating hotels by 2019.”

Last week the founder and chairman of Action Hotels, His Excellency Sheikh Mubarak A M Al Sabah, was presented with the Industry Pioneer award during the 2017 Arabian Hotel Investment Conference, held at Madinat Jumeirah in Dubai.

Shares in Action Hotels are currently up 1.03 percent at 37.38 (0835GMT).