2008 looks to be a record year for tourism, and most of Israel's hotels are reaping the profits. Dan Hotels Corp. Ltd. (TASE: DANH) today published its financial report for the second quarter of 2008. The hotel chain's revenue rose 11% over the corresponding quarter of 2007 to NIS 235.7 million, and its net profit rose 36% to NIS 51.4 million.
Despite rising food and energy costs, Dan Hotel's second quarter gross profit rose 12% over the corresponding quarter and its operating profit rose by 5.5%. The company also recorded a financing profit of NIS 16 million on its foreign currency-linked loans thanks to the shekel's appreciation against the dollar.
Dan Hotels CEO Ami Hirschstein said, "The financial report once again demonstrates that when geopolitical conditions are reasonable, Israel's tourism industry can achieve very impressive results."
Dan Hotels operates 12 hotels in Israel, including the King David Hotel in Jerusalem, with 3,279 rooms altogether. The first and fourth quarters are usually weaker than the second and third quarters.
Published by Globes [online], Israel business news - www.globes-online.com - on August 19, 2008
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