Orascom Development’s hotel sector revenue is down 67% last year

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Orascom Development: The second half of 2020 witnessed a partial recovery in revenues

Orascom Development Egypt said that the hotel sector is still affected by its operational and financial results of the “Corona virus” crisis during 2020, pointing out that pressure continued on the sector during the fourth quarter of 2020 due to the lack of international travel.

She explained that although Egypt restored international flights on July 1, 2020, the number of tourists who visited Egypt 1.4 million since July until the end of December, bringing the total number of tourists who visited Egypt in 2020 to 3.7 million, compared to 13.6. One million tourists in 2019.

The hotel business depends heavily on domestic tourism while hotels are still operating at 50% of their total capacity.

The company has responded to these conditions with a firm plan to temporarily reduce hotel operating costs, mitigating the impact of disruptions on hotels’ liquidity.

The management remains confident that the potential and long-term outlook for the sector remain positive, especially with the global vaccine deployment plans.

The hotel sector’s revenues decreased by 67% to reach 499 million pounds during 2020, indicating that the decline in revenues began since the second quarter of 2020 as a result of the partial closure and the weak rates of reservations and occupancy.

With the reopening of hotels and the decision to operate hotels by 50%, emphasis has been placed on providing services that cater to local demand.
The second half of the year witnessed an improvement, with revenues reaching 121 million pounds in the fourth quarter of 2020, but they remained 68.2% lower than the fourth quarter of 2019 results.

The operating profits of the sector remained positive, recording 2.3 million EGP compared to 600.5 million EGP in 2019.

Profits before deduction of interest, taxes, depreciation, depreciation and non-cash items were 3.7 million pounds in the fiscal year 2020, compared to 516.3 million pounds in 2019.

The article, Orascom Development’s hotel sector revenues, down 67% last year, was written in Al-Borsa newspaper.