Jumeirah Group reports 8 per cent earnings growth 2013

04 May 2014

Higher earnings led by strong growth in major source markets such as UK, Russia

Dubai-based Jumeirah Group has reported higher revenues and earnings in 2013 on the back of strong growth in its major source markets.

The company said consolidated group revenues grew by 8%, while total revenues under management went up by 11%.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 8%, while occupancy and average room rates across the company’s owned and leased portfolio grew by 5%. Revenue per available room (RevPAR) grew by 11%.

“2013 was a stellar year for Jumeirah Group, a year that concluded the announcement that Dubai would host the World Expo in 2020,” said Jumeirah Group president and CEO Gerald Lawless. “We expect this to further enhance the energy that is going into the growth of Dubai as not only a destination for travellers, but also as a home for businesses, entrepreneurs and their families.”

The UK continues to be the biggest source market for Jumeirah Group hotels around the world, representing a total 16.4% of total room nights sold. Revenue from UK travellers increased by 26%.

Meanwhile Russia continues to be the largest source of revenue, rising by 11.7% in 2013 compared to 2012 and accounting for 16% of the company’s revenues.

In other key markets, Saudi Arabia registered an increase of 33% in business; while Chinese business grew by 32% and Australia by 70%, driven by the partnership between Qantas and Emirates Airline.

Jumeirah’s pipeline includes hotels it will operate in St Petersburg, Russia and on the coast of Oman near Muscat. Both are scheduled to open in 2016. The company also signed letters of understanding in the Middle East, Asia, Africa and Europe during 2013 and is expecting them to mature into management agreements in 2014.

In the UAE, the next addition to Jumeirah’s Dubai portfolio of hotels will by the fourth phase of the Madinat Jumeirah, which contractors recently submitted bids for. Looking ahead, the company expects to operate more hotels in Dubai as the city aims to attract 20 million visitors a year by the Expo 2020.

Elsehwere, the operator’s future developments are:

  • Jumeirah Gamsha Bay Resort, Egypt
  • Jumeirah Saraya Aqaba, Jordan
  • Jumeirah Dubai Tower Doha, Qatar
  • Jumeirah Clearwater Bay Resort, Sanya, China
  • Jumeirah Guangzhou, China
  • Jumeirah Hangzhou, China
  • Jumeirah Macau, China
  • Jumeirah Thousand Islands Lake Resort, Qiandaohu, China
  • Jumeirah Mumbai, India
  • Jumeirah Bali, Indonesia
  • Jumeirah Bangkok, Thailand
  • Jumeirah Bilgah Beach Hotel, Baku
  • Jumeirah Marrakech Golf & Polo Resort, Morocco

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