DUBAI: Abu Dhabi National Hotels Company reported a more than doubling of net profit year over year in the first quarter as its financing costs fell.
First-quarter net profit was 40.7 million dirhams ($11.1 million), up from 16 million dirhams in the year earlier period, ADNH said in a filing to the Abu Dhabi Securities Exchange.
Revenue fell to 224.7 million dirhams from 344.3 million dirhams, while costs dropped to 201.8 million dirhams from 294.1 million dirhams.
While financing costs fell to 9.5 million dirhams from 19 million dirhams, the big difference from a year ago was the 41.9 million dirhams settlement of a legal claim in Q1 2020 that was not repeated in 2021.
The legal claim related to construction of one of its hotels. The total settlement amount was 200 million dirhams against available accrual of 158 million dirhams, resulting in a loss of 42 million dirhams, ADNH said.
Profit from joint ventures, including ADNH Compass Middle East, was 44.3 million dirhams, up from 39.6 million dirhams a year earlier.
The company, which owns 12 hotels in the UAE, including two Radissons, a Sheraton, a Park Hyatt and a Ritz Carlton, ended the quarter with 89.5 million dirhams less cash or equivalents at 264.9 million dirhams.
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