Gulf Hotels Group Reports Strong 2025 Results and Plans Expansion into Saudi Arabia

Hospitality Company Targets Regional Growth Through Asset-Light Strategy

Gulf Hotels Group B.S.C (GHG), one of Bahrain’s prominent hospitality companies, has announced its financial results for the year ending 31 December 2025, reporting steady profit growth and outlining plans for regional expansion. The company is preparing to enter the Saudi Arabian market while strengthening its long-term strategy focused on asset-light growth and diversified hospitality services.

Annual Financial Performance Shows Stable Growth

For the full year of 2025, Gulf Hotels Group recorded a net profit of BD 9.8 million, reflecting a 10.4% increase compared with BD 8.9 million in 2024. The performance highlights the company’s ability to maintain growth through operational improvements and careful cost management.

Revenue for the year reached BD 36.9 million, slightly higher than the BD 36.7 million recorded in the previous year. Earnings per share also improved to 43 fils, up from 39 fils in 2024.

The Group’s total comprehensive income increased to BD 10.5 million, marking a 53.5% rise compared with BD 6.8 million in 2024, indicating stronger overall financial performance.

Fourth Quarter Results Reflect Positive Momentum

During the final quarter of 2025, the company reported net profit of BD 3.33 million, representing an 11.6% increase compared with BD 2.98 million in the fourth quarter of 2024.

Earnings per share for the quarter rose to 15 fils, compared to 13 fils during the same period the previous year. Total comprehensive income for the quarter climbed significantly to BD 4.4 million, more than doubling the BD 2.2 million recorded in the same quarter of 2024.

Quarterly revenue remained largely unchanged at BD 10.6 million, reflecting a marginal decline of 0.41% year-on-year.

Dividend Recommendation for Shareholders

Following the strong financial performance, the Board of Directors has recommended a cash dividend of 25 fils per share, amounting to approximately BD 5.64 million.

The proposed dividend represents 25% of the share’s nominal value and will be subject to shareholder approval during the Annual General Meeting scheduled for 18 March 2026.

Strengthened Balance Sheet and Asset Base

Gulf Hotels Group continued to strengthen its financial position throughout 2025. Total equity (excluding minority interests) increased to BD 110.3 million, compared with BD 105.5 million at the end of 2024, representing a 4.5% increase.

The Group’s total assets also expanded to BD 117 million, up from BD 112.9 million in the previous year, reflecting a 3.6% rise.

Company leadership noted that maintaining operational efficiency and improving profitability remain key priorities as the hospitality sector faces increasing competition and new hotel supply across the region.

Entry into Saudi Arabia Through Strategic Partnership

As part of its 2026–2030 strategic roadmap, Gulf Hotels Group is focusing on expanding its presence beyond Bahrain through an asset-light operating model.

A major milestone in this strategy is a partnership with Burhan Hotels, under which Gulf Hotels Group will manage three hotels in Makkah, Saudi Arabia, adding approximately 1,000 rooms to its portfolio.

This partnership marks the Group’s first operational presence in Saudi Arabia, a market experiencing rapid growth driven by tourism development and religious travel.

The company is also exploring additional opportunities in the United Arab Emirates, East Africa, and the Indian Ocean region as part of its regional expansion plans.

Portfolio Integration with Global Hospitality Brands

In 2025, Gulf Hotels Group also strengthened its portfolio through strategic brand partnerships aimed at improving international visibility.

The Gulf Hotel Bahrain was integrated into the Marriott Bonvoy loyalty and distribution platform, enabling broader global reach and enhanced guest engagement.

Meanwhile, Gulf Court Hotel Dubai underwent a rebranding and now operates as Grand Mercure Dubai Downtown, following a partnership with global hospitality group Accor.

New Business Units to Diversify Revenue Streams

In addition to hotel management and operations, Gulf Hotels Group launched two new business units in 2025 designed to expand its service offerings.

The Gulf Catering Company provides large-scale food production and institutional catering services to sectors including healthcare, education, and corporate clients.

The Group also introduced MFive Services, a specialised hospitality support services company established in partnership with Abu Dhabi National Hotels and Metro Global.

According to company leadership, these initiatives aim to strengthen the Group’s long-term position as a regional hospitality platform while creating new revenue streams across complementary hospitality services.