15th Sep 2014 09:56
LONDON (Alliance News) - AIM-listed hotel operator Action Hotels PLC declared a maiden interim dividend Monday, after significantly narrowing its losses in the first half of 2014, buoyed by strong revenue growth from higher room rates and occupancy.
The company, which is focused on developing and managing branded economy and midscale hotels in the Middle East and Australia, posted a pretax loss of just USD47,000 for the six months to June 30, compared with a loss of GBP1.8 million in the first half of 2013, when its results were hit by large net foreign-exchange losses and higher finance costs.
Action said total reported revenue increased by 28% to USD19.5 million in the first half, driven by a 10% increase in the average daily rate to USD113, and by revenue per available room growth of 7.4% to USD89. Like-for-like occupancy increased to 82% from 80%.
The company declared a maiden interim dividend of GBP0.72 pence per share. The company listed on AIM in December 2013.
"The underlying market demand for our hotels has helped to ensure that they continue to deliver high occupancy rates. In the past six months we have continued to invest into our corporate infrastructure including additional senior management positions as we progress our secured hotel construction program, currently in excess of 1,000,000 square feet. The Group is now ready for accelerated growth," said Founder and Chairman Sheikh Mubarak Al Sabah in a statement.
Action Hotels said it is in advanced discussions on a number of potential new hotel opportunities on both freehold and leasehold basis in terms of potential new hotel developments and conversions.
The company said it saw a strong first-half performance from all six of its operating hotels, including its Holiday Inn hotel in Muscat, Oman, which was in its first six months of trading.
Shares in Action Hotels were up 1.2% at 69.30 pence Monday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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