Misr Hotels: Long-term bank debt declines to EGP780.7 mn

The latest financial data of Misr Hotels revealed a slight decline of 1.90% in its long-term loans from banks, reaching EGP780.7 mm at the end of the first quarter of 2023, compared to EGP796.2 mn at the end of 2022, with a decline of EGP15.6 mn.

The company had financed the development of the Nile Ritz Carlton Hotel, owned by the company, through a long-term loan obtained from National Bank of Egypt with a guarantee of the hotel's revenues for 4 financing tranches, as follows: (first tranche 500 million - second tranche 188 million - third tranche 175 million - fourth tranche 121 million) and the company succeeded through accelerated payments in closing the third and fourth tranches with the highest interest rate and the company is regular in paying the installments due on it.

It is worth noting that the balance shown within the non-current liabilities of the first tranche of the loan amounted to EGP491.99 mn at the end of March 2023, with an interest rate of 19.40%, while the installments due for payment during the following year amount to EGP94 mn.

While the balance shown within the non-current liabilities of the second tranche of the loan from NBE to the company amounted to EGP195.1 mn at the end of the first quarter of 2023, with an interest rate of 19.75%, and it is worth noting that the number of installments due for payment during The following year recorded EGP30 mn.

The board of directors of Misr Hotels on January 24, 2017 unanimously agreed to start accelerated repayment and authorize the chairman and managing director to negotiate with the National Bank of Egypt on how to implement accelerated repayment of loan installments and interest related to developing Nile Ritz Carlton Hotel according to The liquidity available to the company.

Misr Hotels revealed in its latest statement to the stock exchange on June 26, that the total value of accelerated repayment of loan installments due to the National Bank of Egypt amounted to EGP403.18 mn, since the board's decision in January 2017.

The company explained in its statement that it recently made an accelerated payment of 28 worth EGP10 mn, as a reverse accelerated payment from the remaining balance on the second tranche amounting to EGP188 mn.

Returning to the details of Misr Hotels' long-term bank financing, the balance of long-term loans for Nile Ritz Hotel as at March 31, 2023 amounted to EGP687.08 mn, after deducting installments due for payment during The following year amounted to EGP124 mn and appeared within current liabilities.

In addition to a loan to complete the development of Safir Dahab Hotel, according to an initiative from the Central Bank of Egypt, which increased its debtor interest rate several times after decisions from CBE, it has now become 13% and with a guarantee of hotel revenues disbursed until March 31, 2023 About EGP93.615 mn and completed during the withdrawal period and permission in April.

Misr Hotels achieved good performance, as its asset portfolio increased by 19.67%, reaching EGP 2.74 bn at the end of Q1-2023, compared to EGP 2.29 bn at the end of Q4-2022, an increase of EGP450 mn.

Its net profits increased by 140.08%, recording EGP658.45 mn during Q1-2023, compared to EGP274.26 mn during The same period in Q4-2022, an increase of EGP384.19 mn.

Earnings per share rose to EGP16.63 per share during Q1-2023, compared to EGP6.93 per share during The same period in Q4-2022, an increase of EGP9.7 per share.