Jabal Omar Development Company (JODC), one of the largest real estate developers in Saudi Arabia, said that its revenue during the first half of the year (H1) surged almost fourfold to SR391.3 million ($104.2 million).

The growth was driven by the strong performance of the hospitality portfolio and improving occupancy and footfall at retail properties on the back of the remarkable recovery in Umrah activities.

The master developer of the iconic mega mixed-used project in Makkah added that hospitality revenue increased 287% year-on-year (YoY) due to increases in both occupancy and ADR (average daily rate).

Revenue from the retail portfolio increased 326% compared to H1 2021 on revenue maximisation initiatives and increased footfall.

Gross profit soared by 152.9% YoY to SR71.5 million, up from a gross loss of SR135.2 million in the same period a year ago. This is attributed to higher revenues, cost containment measures, and efficiencies from the company’s comprehensive transformation strategy.

Operating loss was SR31.1 million in H1 2022, a significant reduction of 91.5% from SR365 million in H1 2021, attributable to the company improving its operational performance due to the various initiatives it launched in 2021.

Khaled Al Amoudi, CEO of Jabal Omar Development Company, said: “The above-expected activity level in the Hajj and Umrah sector since the start of 2022 supported our top-line solid performance. Occupancy levels at our hotels were almost back to pre-pandemic levels, and footfall at our malls also witnessed a solid recovery momentum. We are expecting these levels to be sustained for the remainder of the year, as there remains pent-up solid demand for pilgrims, both domestic and international, to visit Makkah and the holy sites.

“The ongoing implementation of our company-wide transformation plan continues to reflect positively on our financial performance. Our gross and operating profits are improving significantly, thanks to the cost containment and operational efficiency enhancement measures. Moreover, we continue to see the tangible, positive impact of our ongoing capital structure optimisation plan. Our balance sheet is becoming more robust, and our financial position more sustainable compared to the past two years.

“Looking ahead, we expect to bring in new sources of revenue from our recently opened malls and soon-to-be-opened hotels. We are also focused on making substantial progress on construction work for phases 2,3, and 4. Moreover, we will continue optimizing our operating assets, further deleveraging our balance sheet and optimizing our capital structure. The impending EGM to vote on the Alinma Fund debt-to-equity transaction will be a game changer for us; if approved by our shareholders, the Company will be entirely on track to achieve its targets short-short for short to mid-term targets.” – TradeArabia News Service