ADNH writedown against hotel project hits Q3

Abu Dhabi National Hotels (ADNH) said net profit for the third quarter of 2011 fell by AED48m ($13.06m) after it wrote down a AED50m impairment loss against the cost of a hotel project. The UAE-based hospitality company with interests in hotels, catering, transport and retail, said the charge would not affect the company\'s operations, cash flow or cash position. For the nine months to September, total group revenue increased by 7.4 percent to AED1,338.1m, the company said in a statement. Gross profits increased by 13.4 percent to close at AED206.7m, ADNH added. ADNH said it had seen a strong performance and steady growth of its subsidiaries, led by its hotel, retail and catering divisions. The hotel division accounted for AED120.5m of revenues while the catering division, ADNH Compass, saw revenues of AED202m for the quarter, representing an 11.1 percent growth rate over the corresponding period last year. The company\'s transport division, Al Ghazal Transport, delivered revenues of AED58.15m for the quarter, the statement added. Salem Mohamed Athaith Al Ameri, chairman of ADNH said: \"The board considers it necessary to recognize the fair value of its assets in its continued effort to improve the transparency and reliability of financial data available to its stakeholders. \"For that reason, an asset impairment provision in the sum of AED50m was recognized in this quarter which is attributable to the change in forecast market conditions and which is subject to further study and evaluation by the board by year end.\" Richard W Riley, CEO of ADNH, added: \"As we look ahead confidently to a fourth quarter, ADNH will continue its commitment to excellence across the varied hospitality sectors in Abu Dhabi and region-wide.\" ADNH is currently developing two luxury hotel brands in the capital - The Ritz-Carlton Abu Dhabi, Grand Canal, the first Ritz-Carlton property in the capital, and the Park Hyatt Abu Dhabi Hotel and Villas, the largest Park Hyatt hotel in the world.