The Entreprise de Gestion Hôtelière El Aurassi (EGH El Aurassi) is a hotel management firm, with its headquarters in the capital city of Algiers. The Hôtel El Aurassi is the flagship hotel of the firm and one of four hotels in the EGH El Aurassi portfolio. The other three hotels in the management company’s portfolio include Hôtel Rym in Beni Abess, Hôtel El Boustene in Menea and Hôtel El Mehri in Ourgela. All three of these hotels are located in the south of Algeria. The four hotels were placed under the same management group, EHG El Aurassi, in 2010 following a decision made by the government.
Hôtel EL Aurassi is a five-star hotel, inaugurated in 1975, and owned by the Algerian government through various management vehicles. In 1991 the hotel became a joint stock company, with a capital of AD40m (€330,880), owned entirely by the Holding Public Services, a government-run firm. In 1995 El Aurassi issued a further 14,600 shares, which resulted in a more than AD1bn (€8.3m) increase of share capital to AD1.5bn (€12.4m). Four years later EGH El Aurassi launched an initial public offer to float 20% of its capital, and in 2000 it was officially listed on the Algiers Stock Exchange.
EGH El Aurassi’s main asset is the Hôtel El Aurassi. The hotel complex includes 453 rooms, with 604 beds, four restaurants capable of hosting 1000 guests, a large swimming pool and a fitness centre, that includes five tennis courts. It includes various business verticals from services to event and conferences, hosting and catering.
In terms of financial performance, EGH EL Aurassi recorded a setback in 2015, when it saw its revenues decrease from AD3.07bn (€25.4m) in 2014 to AD2.87bn (€23.7m) in 2015, representing a 6.6% decline. This downslope trend is also noticeable in the net income of the hotel group, with a 17.5% decrease from the previous year, going from AD738m (€6.1m) in 2014 to AD609.3m (€5m) in 2015. According to a press release dated June 5, 2016, the downturn in the financial performance of the hospitality group is due to the economic crunch and the current global economic climate. Other reasons highlighted in the press release include the amortisation annuities costs of the reprocessing work of the renovation project of the Hôtel El Aurassi.
The accommodation segment contributed 50.1% of the total revenue in 2015, with occupied room nights of 71,071 out of 82,273 representing an 86% occupancy rate in comparison to 54.65% in 2014. The food and beverage segment contributed to 42.9% of total revenues in 2015, while other auxiliary activities generated 7% of total revenue.
Distribution Of Dividends Exercise 2015
undefined The ordinary general meeting of the company’s shareholders was held on May 25, 2016. It was decided that the amount of the dividend per share of the exercise in 2015 should be AD40 (€0.33) and was paid out on July 4, 2016.
Due to its long-standing relationship with the Algerian Government, EGH EL Aurassi benefits from numerous measures taken to maintain jobs and modernise the organisation. EGH EL Aurassi has benefited from subsidised government loans, financial restructuring, capitalised interest from the Treasury and payback time benefits in regards to its modernisation financing.
EGH EL Aurassi launched a rehabilitation programme to modernise and renovate all the hotels in its portfolio. First up was the Hôtel El Aurassi renovation programme, which was initiated in 2009 and completed in 2012. The total cost of the programme was €79m, financed primarily by Crédit Populaire d’Algérie (CPA), which contributed €55.5m of the total €79m. The total cost of the renovation programme for the three southern hotels, Rym, Boustene and El Mehri, came to €17.8m. The renovation was financed entirely by the Treasury and the CPA.
You have reached the limit of premium articles you can view for free.
Choose from the options below to purchase print or digital editions of our Reports. You can also purchase a website subscription giving you unlimited access to all of our Reports online for 12 months.
If you have already purchased this Report or have a website subscription, please login to continue.