Jordan Times
Saturday, June 27, 1998
Arab International Hotels Company widens investments to cover other touristic
sites in Jordan
AMMAN (J.T.) — The Arab International Hotels Company which owns the
Marriott Hotel in Amman was able to achieve JD10.77 million in gross earnings last year,
close to the figure posted in 1996, but the profit available for distribution was seven
per cent higher than the 1996 amount.
According to the annual report, the net operational earnings amounted to JD4.13 million
but the net profit before income tax and other provisions was around JD3.59 million. The
total of the balance sheet at the end of 1997 stood at JD39.5 million which also
represents total assets. The amount was nearly 64.0 per cent higher than the total at the
end of 1996. Shareholders' equity rose by 70 per cent to reach JD34.7 million. The
increase in equity was primarily the result of raising the capital during the past year.
Out of the total assets, JD5.7 million were net fixed assets and JD9.92 million were the
estimated long-term investments. The company has participated in establishing the
“Tourism Business Company” which will build a Marriott hotel on the eastern
shore of the Dead Sea. The Arab International Hotels Company also participated in
establishing the “Tourism Investment Business Company,” which will develop the
northern shore of Aqaba. The project, capitalised at JD100 million, entails building a
Marriott hotel in Aqaba after the development process.
The Arab International Hotels Company is currently undertaking a full renovation and
modernisation of the hotel facilities in Amman. The company has finalised the design for
an expansion of the present hotel building and has obtained the approval of the concerned
parties to implement the project. A tender for the expansion will be announced during this
year.
Another project being studied by the company's board of directors is the possibility of
purchasing a tourism company that owns a 10-dunum plot of land on the northern shore of
Aqaba. Under study also is the feasibility of investing in the Petra area through buying
one of the hotels that is currently operating there.
The report showed that the Marriott Amman registered a 77.8 per cent occupancy rate last
year compared to 76.2 per cent in 1996. Around 111,600 stayed at the hotel in 1997.
The company posted a JD3.04 million profit after tax and the general assembly approved the
distribution of JD2.16 million in dividends at a rate of 18 per cent.