Kingdom Hotel Investments (KHI) said net profit for the six months ended June 30, 2008 reached $20.6 million, an increase of eight percent compared with the $19.1 million it posted during the same period a year ago. KHI, the leading emerging markets hotel investment company and backed by Prince Alwaleed bin Talal, attributed the strong financial performance to encouraging business from existing hotels and acquisitions underpinned by continued diversification into high growth markets, particularly Asia, and further investment. Consolidated revenue rose 53 per cent to $115.5 million compared with $75.4 million during the same period last year. The company also said its strong revenues were driven by five Asian subsidiary properties acquired in 2007, as well as strong like-for-like growth across KHI's 12 comparable hotels, especially in the Middle East and North African regions. Asia represented 43 percent of reported hotel revenues compared to 21 percent the previous year. Sarmad Zok, KHI's chief executive officer, said: “KHI has delivered a strong financial performance in the first half as we continue to actively manage the Group's portfolio in selective high growth markets. Our diverse product portfolio across assets and regions has enabled us to deliver strong revenue and profit growth despite the challenges affecting the worldwide economy.” KHI said its outlook for the second half of the year continues to be robust. It expects to complete its planned renovation programs, open the Four Seasons Mauritius resort and complete residential sales in October, as well as advance construction on development projects. Other ancillary real estate sales are expected to progress with continued pre-sales activities in Manila and the launch of the Raffles Seychelles residential marketing program. KHI is also in advanced stages of negotiation with various lenders to add between $300-350 million of new debt commitments by year-end.
