Ubar Hotels & Resorts SAOG (UBAR) Q2 FY2025 Earnings Call Transcript & Summary

Good afternoon. My name is Ravindra. I'm here representing Ubar Hotels and Resorts SAOG. I'm working with Ubar Hotel as the Group Financial Controller and Board Secretary. I'm here to present the half year financial data of Ubar Hotels and Resorts SAOG company. So let me start with the slide. For the first half year, for the Ubar Hotel, it has proven to be very good. Both the hotel have managed to achieve the revenue targets. From the last -- compared to the last year, it has achieved -- it is more by OMR 328,000, is 29%. EBITDA hotel as a company has managed to achieve in positive. Last year, it was OMR 343,000 in minus. Now it is in the plus by OMR 18,000. So company has managed to achieve the EBITDA OMR 18,000 and it is plus. Profit before taxation, it is negative by OMR 316,000. Compared to the last year, it was -- last year, it was OMR 653,000. The company has managed to reduce the losses/profit before tax by OMR 337,000. If you go -- if you compare the property-wise, property-wise revenue, Golden Tulip, Nizwa Hotel has achieved a revenue of OMR 794,000. Last year, it was OMR 716,000, more by 11% compared to the last year. Operational profit, last year it was minus OMR 14,000 crores. Company has managed to achieve OMR 69,000. That's growth of 573%. Net profit after taking all expenses, it is about OMR 45,000. Last year, it was OMR 63,000 in negative. Profit before taxes is minus -- it is negative OMR 18,000 compared to the last year of OMR 137,000 negative. The company has managed to reduce the losses, profit before tax by OMR 118,000. For the Al Ahlam Hotel Management, Golden Tulip Muscat property, revenue has jumped from OMR 435,000 of the last year to OMR 686,000, thus achieved 58% more by the last year, that is OMR 250,000 more. Operating losses, it is minus OMR 27,000 compared to the last year, it was OMR 279,000. Company has managed to reduce the losses by OMR 252,000. Profit before taxation is OMR 161,000 in negative, but last year, it was OMR 407,000. So company has managed to reduce by OMR 245,000. So overall, company has managed to reduce the losses, increase the revenue. This is just a small graphical presentation. Revenue increased by 29%. GOP last year, it was minus by OMR 343,000. This year, overall for the -- including both hotel, it is OMR 18,000 positive. ARR for the company is OMR 24. Last year, it was OMR 28. Occupancy increased from 37% to 60%. RevPAR increased from OMR 10 to OMR 14. Total revenue per occupied room increased -- total revenue per occupied decreased from -- actually, it is a decrease from OMR 57 to OMR 46. But at the same time, total revenue per available room increased from OMR 21 to OMR 28. Property wise, Golden Tulip revenue, hotel has achieved revenue of OMR 794,000 compared to the last year of OMR 717,000, which is 11% more. Operational GOP, it is OMR 70,000, almost OMR 70,000 positive compared to the last year, a negative of OMR 15,000. Taking into all expenses of Ubar hotel, profit before tax, it is minus OMR 19,000 compared to the last year of OMR 117,000. That is company managed to reduce the losses by OMR 118,000 (sic) [ OMR 108,000 ]. ARR last year, it was OMR 38, for the same period current year, it is OMR 35. Occupancy increased from 43% to 52%, RevPAR increased from OMR 16 to OMR 18. Total revenue per occupied room, it has dropped down slightly from OMR 76 to OMR 71, but at the same time, total revenue per available increased from OMR 37 to OMR 37 per occupied -- per available room. For the Golden Tulip Muscat property, last year, total revenue was OMR 435,000. This year, it is OMR 686,000, increase of 58%, close to OMR 150,000. GOP, Gross Operating Losses, it is -- last year, it was OMR 280,000 negative. Now it is OMR 27,000. The company has managed to reduce the losses by 252,000. ARR, last year it was OMR 19. This year, it is OMR 17. There is a slight drop noted. But at the same time, occupancy increased from 33% to 65%. RevPAR, it was OMR 6 last year. Currently, it is -- current year, it is OMR 11. Total revenue per occupied room last year, it was OMR 41, but this year, it is OMR 37. At the same time, total revenue per available room is OMR 14 last year it was, and OMR 22 current year. So overall company is following a strategy to increase -- maximize the revenue. Rather to concentrate on only AVR, company's strategy is to maximize the revenue per occupied room and per available room. First half year is looking good. It has proven good for the company. Company is expecting the next 6 months also will be very good and company will be -- company will achieve the budgeted revenue and budgeted target, and it will be more than the last year. Now touring sector in Oman, it is a half season. Half season, in the half season, business activity is very, low minimum. The leisure segment would start from the October onwards. Now both hotel management is working on various promotional offer to grab as much as possible the revenue and control the cost in every area and bring the efficiencies of synergies. Management is also taking all steps to control the cost. This is the major statistic. GOP for Darbar Hotel is 1%, compared to the last year it was minus 30%. Profit before tax is from 57% negative to bring down to 22% negative. Food cost, last year it was 35%, this year is 41%. Beverage cost 31% last year, current year is 30%. For the Golden Tulip, Nizwa, GOP from 9% negative to 9% positive. Profit before tax last year, it was 19% negative; current year, it is at 2%, reduced from 19% to 2%. Food cost, it is at 41%. Beverage cost it is 26%. And for the same parameter for the Golden Tulip Muscat, last year it was 64% negative GOP, currently negative 4%. Profit before tax, last year it was 94% negative. Current year it is 24%. Food cost 41%, beverage cost 36%. This is a property-wise comparison for both the properties. This is the balance sheet of the company as of 30th June. So now with this, we are concluding the meeting. Thank you.