IFA Hotels & Resorts (IFA HR), an international leader in the development of premier and integrated mixed-use hotel and tourism resort projects, has reported a loss of KD19.5 million ($67.3 million) for the 2010 financial year.
Earnings per share decreased to 45.2 fils (16 cents) this year, while shareholder equity decreased to KD50.79 million ($175.2 million). The company’s total assets, however, increased by 10 per cent to KD400.85 million ($1.38 billion).
Chairman Ibrahim Al-Therban said: “The Company adopted the completed method of accounting, as per the recommendations of the International Accounting Standard Board (IASB), and so we were not able to recognise revenue based on proportion of construction completed for units sold. The losses we reported this year were largely due to a capital loss on the sale of land. The land was sold to generate further liquidity for the company to be able to repay financial commitments and finance ongoing projects. A revaluation loss has also been taken on our property portfolio in South Africa and provisions have been made in the fourth quarter in order to compensate for current market conditions.”
“Despite tough economic conditions, this year has been our busiest year yet in terms of moving projects from construction to completion. To date, we have completed projects in excess of $1billion including two five-star hotels and five luxury residential developments comprising more than 1,200 units. Important to note is how this significantly reduces the company’s construction exposure, with more than 70 per cent of our projects in South Africa and on The Palm Jumeirah now complete. With 2011 poised to be equally busy, we expect to see these results steadily improve in the coming year,” added Talal Jassim Al-Bahar, vice chairman and CEO of IFA HR.
In line with this increased activity, IFA HR has created IFA Hotel Investments (IHI), a wholly-owned subsidiary that will provide strategic direction to all of the company’s operational assets and expand its portfolio within the hospitality industry. IFA HI will encompass and lead, on a worldwide scale, IFA HR’s operational asset portfolio including its hotels, hotel condominiums, commercial, retail and food and beverage ventures. IFA Hotel Investments will also oversee the IFA Collection, which manages the company’s private residence clubs, vacation clubs and lifestyle ownership products.
The Middle East was a busy region for IFA HR this year as the company completed its Golden Mile, Palm Jumeirah project. Good progress was also made on the Fairmont Palm Jumeirah hotel, which is scheduled for completion next year and handover of the exclusive residences that flank the hotel is well underway. In The Palm Residence, IFA HR opened its second Dubai-based food and beverage outlet – Mezze Mia – while in the Mövenpick Hotel & Residence Jumeirah Lakes Towers the company launched loft and duplex apartments as well as a private residence club.
In Lebanon, IFA HR celebrated the culmination of its initial project with Kingdom Hotel Investments as the Four Seasons Hotel Beirut hosted its grand opening. With 230 guest rooms including 60 spacious suites, a 750-sq-m ballroom, restaurants, library bar, roof-top pool and a health and beauty spa, this iconic hotel is set to become one of Beirut’s finest venues for high-end events.
South Africa was home to the company’s most significant opening this year with the stunning Fairmont Zimbali, which welcomed guests just in time for the FIFA World Cup 2010. The resort offers the ultimate in five-star luxury accommodation including conference facilities, the international Willow Stream Spa, an exclusive beach club, decadent food and beverage outlets, a range of hotel condominiums and Africa’s first, branded private residence club – Fairmont Heritage Place, Zimbali. A Gary Player Signature Golf Course, country club and a golf academy with state-of-the-art driving range are also under construction.
Year after year, South Africa provides IFA HR with an almost unending source of development and investment opportunities aligned with its strategy to deliver premium resort and residential projects in the region. In keeping with this commitment, IFA HR strengthened its interests in Boschendal Limited by acquiring an additional 5.25 per cent for a total shareholding of 37.33 per cent.
In Asia, IFA HR increased its shareholding in Bangkok-based luxury condominium developer Raimon Land to 41.07 per cent and helped launch its new private residence club product with sites in Phuket, Pattaya and Bangkok. The financial year 2010 saw Raimon Land handover not only the prestigious Heights Phuket but also the 374-unit Northpoint Pattaya project. Comprising two stunning towers of 54 and 46 storeys on Wong Amat Beach, Northpoint Pattaya was voted the ‘Best Condo Development on the Eastern Seaboard’ by the 2008 Thailand Property Awards. The handover of Northpoint Pattaya is Raimon Land’s largest to date.
In North America, IFA HR announced that its site at 42nd Street and 10th Avenue in New York City will be transformed into a 669-room YOTEL. This will be the first YOTEL opening outside of an airport and New York’s largest hotel opening in 2011. YOTEL Times Square will be part of Related Company’s 1.2 million-sq-ft, 60 storey LEED-Silver complex.
Al-Therban concluded: “Heading into the new financial year, we will continue to focus our efforts on the completion of our existing projects worldwide and as a result, transition the company into its operational stage. To take advantage of the opportunities we see in both existing and emerging markets and to maximise our shareholders’ future returns, we will also focus on master-planning our land bank so that we are ready to start new construction when the market recovers.”
