Alhokair Group aims to enhance operations, boost profitability in Q2 2024: CEO

Fahad Al Obailan, CEO of Abdulmohsen Alhokair Group for Tourism and Development (Alhokair Group)

Abdulmohsen Alhokair Group for Tourism and Development (Alhokair Group) aims to enhance operations, boost profitability, and capitalize on seasonality and market opportunities. This shall be done by improving operational efficiency in Q2 2024 and beyond to meet shareholders' expectations, CEO Fahad Al Obailan said.

During a call with Argaam, he explained that the company is undertaking many development plans, subject to regular feasibility studies to ensure optimal cash flow use, emphasizing its aptness to achieve these goals and aspirations.

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Al Obailan pointed to Alhokair Group’s focus to utilize its available liquidity as appropriate to ramp up the return on investment and reduce costs.

He also noted the increased demand for hotel rooms, especially in Riyadh, aligning with the Saudi Vision 2030, which aims to increase business and leisure tourists. Riyadh has hosted several international exhibitions and forums, benefiting from the ease of obtaining a Saudi visa for tourism, business, or Umrah purposes.

In terms of financials, according to the CEO, several factors contributed to Alhokair Group’s revenue growth, including the addition of The Park entertainment center in Taif, the annual development and renovation of Sparky's Jizan and Panorama Riyadh, the introduction of new recreational concepts and the adoption of a modern identity. Intensive marketing campaigns also helped attract more visitors to the group’s entertainment centers, given the offering of various options.

As for damage, impairment, and business interruption stemming from the recent fire accident at one of its hotel facilities in Riyadh, Alhokair Group secured SAR 19.1 million in compensation, which contributed to higher net earnings and profit margins. However, it did not improve gross and operating profits, Al Obailan stated.

The group continuously integrates new ideas and the latest global trends into its family entertainment centers, aligning with customer expectations. This includes updating and developing existing centers and collaborating with international brands to offer their experiences in the Kingdom, he added.

Work is currently underway on developing several existing centers, which will be completed soon, the top executive confirmed.

Alhokair Group’s profits amounted to SAR 4.2 million by the end of Q1 2024, compared to losses of SAR 34.3 million during the same period in 2023, according to data compiled by Argaam.