Abu Dhabi National Hotels Co

1. Company Overview & Earnings Context

Abu Dhabi National Hotels (ADNH) is one of the UAE's leading hospitality groups, with operations spanning hotels, catering, transportation, tourism, facilities management and security services. The Group owns a portfolio of 12 hotels across the UAE, including internationally branded luxury properties, while continuing to diversify its hospitality and catering businesses.

For the first half of 2026, ADNH reported lower revenue and earnings compared to the same period last year. The decline was primarily driven by softer hospitality performance, lower gross margins and reduced contributions from joint ventures. Despite this, the Group continued investing in its hotel portfolio and maintained a strong balance sheet supported by healthy operating cash flows.

2. Financial Performance Snapshot

• Revenue: AED 1.55 Billion (-10.5% YoY)

• Gross Profit: AED 229.1 Million (-48.2% YoY)

• Operating Profit: AED 139.7 Million (-56.9% YoY)

• Profit Before Tax: AED 112.2 Million (-63.2% YoY)

• Income Tax Expense: AED 9.8 Million

• Net Profit: AED 102.5 Million (-63.2% YoY)

• Net Profit Attributable to Shareholders: AED 80.1 Million (-68.3% YoY)

• Basic & Diluted EPS: AED 0.01

Compared with H1 2025:

• Revenue declined from AED 1.73 billion to AED 1.55 billion.

• Gross profit declined from AED 442.7 million to AED 229.1 million.

• Operating profit declined from AED 324.5 million to AED 139.7 million.

• Profit before tax declined from AED 304.6 million to AED 112.2 million.

• Net profit declined from AED 278.5 million to AED 102.5 million.

3. Operational Highlights & Key Metrics

• Total Assets: AED 14.11 Billion

• Total Equity: AED 11.19 Billion

• Total Liabilities: AED 2.92 Billion

• Property & Equipment: AED 10.55 Billion

• Intangible Assets: AED 1.10 Billion

• Cash & Cash Equivalents: AED 684.7 Million

• Financial Assets at Fair Value: AED 220.5 Million

• Trade & Other Receivables: AED 935.2 Million

• Investment in Joint Ventures: AED 191.8 Million

• Investment in Associates: AED 17.0 Million

• Capital Expenditure: AED 209.2 Million

• Net Operating Cash Flow: AED 292.0 Million

• Dividend Paid: AED 378.0 Million

• Portfolio includes 12 hotels across the UAE together with catering, transport, tourism and facilities management businesses.

4. Key Performance Drivers

Revenue declined during H1 2026, leading to lower gross profit and operating earnings. Profitability was further impacted by higher depreciation associated with the Group's asset base and lower contributions from joint ventures compared with the previous year. During the period, ADNH continued investing in its hospitality assets with more than AED 209 million of capital expenditure while generating strong operating cash flows. Management also noted that regional geopolitical tensions temporarily affected occupancy levels across parts of its hospitality business but concluded that no impairment of hotel properties or intangible assets was required.

5. Outlook & Forward Guidance

Management did not provide quantitative guidance for the remainder of 2026. The Group expects the recent impact from regional geopolitical developments to be temporary and believes operating conditions will normalise as market conditions improve. ADNH also confirmed that its property portfolio and intangible assets remain appropriately valued following sensitivity assessments.

6. Investor Takeaway

Abu Dhabi National Hotels reported a challenging first half of 2026, with profitability affected by softer hospitality market conditions and lower operating margins. Nevertheless, the Group continues to benefit from a strong balance sheet, substantial asset base, healthy cash generation and a diversified portfolio across hospitality, catering and transport services. Continued investment in its assets and resilient financial position provide a solid foundation for long-term growth as operating conditions recover.