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Orascom Development Holding AG / Key word(s): Miscellaneous/Preliminary Results
Ad hoc announcement pursuant to Art. 53 LR.
Orascom Development Holding (ODH); announces operational update for the first half of 2022
Altdorf, 19 July 2022 – Orascom Development Holding (ODH) announces its preliminary real estate and hotels KPIs’ for 1H 2022. Full results will be announced on August 17, 2022.
Real Estate 1H 2022 KPIs:
New sales for Q2 2022 reached CHF 173.5 million, a 31.0% increase from CHF 132.4 million in Q2 2021. That brings our 1H 2022 sales value to CHF 306.6 million, a 10.2% increase over 1H 2021.
Despite various macro and geopolitical challenges around the globe and the devaluation of the Egyptian pound against foreign currencies, our real estate operations continued to progress during Q2 2022. We had a robust quarter with strong demand for our primary and secondary homes, complemented by solid sales momentum especially in Egypt and Montenegro. We also continued to increase our average selling prices per sqm across all destinations.
In El Gouna, new real estate sales reached CHF 108.2 million in 1H 2022 vs. CHF 117.5 million in 1H 2021. O West continues to affirm its leading position in West Cairo and recorded CHF 131.9 million in sales for 1H 2022, a growth of 64.5% compared to CHF 80.2 million in 1H 2021. In Makadi Heights, new real estate sales reached CHF 16.7 million in 1H 2022 (1H 2021: CHF 33.8 million), as we had purposefully decided to slow down sales in the destination until we have finalized the land concern issue with the government in June 2022.
Our destinations in Oman experienced a positive change of events during 2022, with Covid-19 restrictions finally being lifted. Hawana Salalah real estate sales started to pick up, with net sales up by 114.1% to CHF 15.2 million in 1H 2022 (1H 2021: CHF 7.1 million). As for Jebal Sifah net real estate sales reached CHF 8.6 million (1H 2021: CHF 20.8 million).
Interest in Luštica Bay, Montenegro has continued to flourish since last year. Net real estate sales increased by 33.9% to CHF 24.5 million in 1H 2022 up from CHF 18.3 million in 1H 2021.
In Andermatt, Switzerland net real estate sales reached CHF 88.6 million in 1H 2022 (1H 2021: CHF 93.1 million).
1H 2022 vs. 1H 2021 Real Estate KPIs*:
* Net sales value for 1H 2021 includes 3 units sold in Fayoum for CHF 0.5mn.
** Andermatt figures are not included in ODH net sales figures as ODH owns 49% stake of Andermatt and thus it is not consolidated.
1H 2022 Hotels KPIs:
ODH hotels' proven business model once again delivered impressive quarterly results despite various macro and geopolitical challenges around the globe. Q2 2022 KPIs showed a healthy increase in both occupancy and ARRs driven by the return of both the corporate and leisure inbound tourists.
In Egypt, our hotels in El Gouna and Taba Heights have benefited from the uptick of the Egyptian hospitality segment with occupancies for Q2 2022 reaching 72% and 23% respectively, while 1H 2022, occupancies reached 66% and 16%. Foreigners represented 72% of our total occupancy in Gouna during 1H 2022 and 75% during Q2 2022.
Our Hotels in Oman experienced a positive change of events since the beginning of 2022, with Covid-19 restrictions being lifted, and hotels were allowed to operate at 100% capacity. Total occupancy during 1H 2022 reached 34% compared to only 5% in 1H 2021.
In UAE, The Cove continues to be one of the best performing hotels destinations for the Group with occupancy up to 63% in 1H 2022 from 48% in 1H 2021. The enhanced operational performance is driven by transient local market, while we see a steady pick-up from our international markets mainly from Germany.
In Luštica Bay, Montenegro, the summer season looks very promising with high demand from regional surrounding markets. The Chedi Hotel continued to draw a considerable attention and interest from local and international markets, reporting 61% occupancy during Q2 2022 vs. 48% in Q2 2021. Total occupancy for 1H 2022 reached 45%, up from 29% in 1H 2021.
In Andermatt, Switzerland, The Chedi Andermatt reported a 71% occupancy in 1H 2022 and Radisson Blu Hotel Reussen occupancy reached 50% during 1H 2022. Overall, the occupancy for Andermatt hotels during 1H 2022 reached 56%, up from 54% in 1H 2021.
1H 2022 vs. 1H 2021 Hotels KPIs:
* Andermatt figures are not included in ODH numbers as ODH owns 49% stake of Andermatt and thus it is not consolidated.
* Occupancy rates reflects the occupancy from hotel guests only, not factoring in the room nights generated with residence owners.
About Orascom Development Holding (ODH):
ODH is a leading developer of fully integrated destinations that include hotels, private villas and apartments, leisure facilities such as golf courses, marinas and supporting infrastructure. ODH's destinations are distributed over seven different countries (Egypt, UAE, Oman, Switzerland, Morocco, Montenegro, and United Kingdom), with primary focus on touristic destinations. ODH currently operates nine destinations: four in Egypt (El Gouna, Taba Heights, Makadi Heights and Byoum), The Cove in the United Arab Emirates, Jebel Sifah and Hawana Salalah in Oman, Luštica Bay in Montenegro, and Andermatt in Switzerland. ODH recently launched O West, the latest addition to its portfolio and its first project in Cairo, Egypt, located on the Sixth of October City.
Sara El Gawahergy
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Orascom Development Holding AG
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