Muscat - Oman Hotels & Tourism Co is planning to develop ten new 3 and 4 star hotels in the sultanate within next five years.
The company’s board has formulated a strategic five year business plan paving the way for its long-term growth and to meet future requirements of the industry with new hotel products.
‘The business plan has been formulated to develop ten new 3-4 star hotels at the strategic locations around the sultanate within next five years. The company is confident that these improvement measures taken by the board will help to increase profitability’, Oman Hotels & Tourism Co said in its yearly financial report submitted to the Muscat Securities Market.
The board of Oman Hotels & Tourism Co recently proposed to increase the company’s authorised share capital from RO7mn (70mn shares of 100bz each) to RO20mn (200mn shares of 100bz each). The proposed increase in share capital is subject to the approval of shareholders at an extraordinary general meeting (EGM) to be held on March 20.
Oman Hotels & Tourism Co said its revenue from continuing operations registered a seven per cent decline in 2016 compared to the previous year, mainly due to a drop in occupancy and average room rate.
Among the hotels being run by Oman Hotels & Tourism Co include: Ruwi Hotel in Muscat, Al Wadi Hotel in Sohar, Sur Plaza Hotel in Sur and the Desert Nights Camp in the Sharqiyah Sands. Oman Hotels & Tourism Co successfully concluded the sale of Al Falaj Hotel in February 2016 for a consideration of RO14mn.
‘The company is facing an intense competition in a highly price-sensitive local market with newly developed hotels and apartments. However, the company will remain focused to sustain its market share and profitability while closely monitoring operating costs’, Oman Hotels & Tourism Co said.
The company said it is optimistic that the measures taken by the board will improve its performance.
‘The airport expansion, improvements and development of road networks are expected to be completed by the end of 2017. It is anticipated that these
infrastructure projects, especially the opening of new Oman Convention and Exhibition Centre combined with stability in general business environment, will pave the way to boost the number of visitors to Oman. This in turn will benefit tourism and hospitality sectors’, Oman Hotels & Tourism Co added.
© Muscat Daily 2017
