Gulf Hotels Group Announces a Net Profit of BD 10.460 Million in 2013, the highest in the Group’s history Chairman Mr. Farouk Almoayyed Announces the Financial Results At the Annual General Meeting Shareholders Approve a 40% Cash Dividend

Manama, Kingdom of Bahrain: Gulf Hotels Group’s forty fourth Annual General Meeting was held on Tuesday March 11, 2014 at 11:00 am in Awal 2 meeting room of the Gulf Hotel. The Annual General Meeting was presided by the Group’s Chairman, Mr. Farouk Y. Almoayyed, while representatives from the Ministry of Commerce, Central Bank of Bahrain, Auditors Ernst and Young, and Fakhro Karvy Computer Share were also present.

Chairman, Mr. Farouk Y. Almoayyed, stated that the Group has reported a net profit of BD 10.460 million, an increase of BD 353,758 or 3.50% on 2012, which surpassed the budgeted profit for 2013 and the Group managed to achieve a total Gross Operating Revenue of BD 31.940 million compared to BD 32.526 million in 2012, a slight decrease of 1.80 %. Mr. Almoayyed further announced that the positive profit levels achieved in 2013 have produced earnings per share of 63 fils compared to 61 fils last year.

Mr. Almoayyed added that based on the results, the Shareholders approved a dividend payout of 40% or 40 fils per share, totaling BD 6,613,540, Director’s fees of BD 180,000, Charity Reserve Expenses of BD 258,209 and BD 10,000 towards National Promotional activities.

GULF HOTELS GROUP B.S.C. PRESS RELEASE Mr. Almoayyed further stated that the difficult trading conditions encountered since the 2011 unrest have continued and the number of international travelers and conferences continue to be lower than in 2010, greatly affecting the hospitality sector, which has marginal growth against last year. Strong results from the retail sector have helped to bolster the company’s performance and there have been some strong returns on various company investments. With everything taken into consideration, he added that Gulf Hotels Group has once again improved its 2012 profit levels which was itself a record year.

Mr. Almoayyed also stated that the Gulf Hotels Group has launched its regional expansion plan with the acquisition of a plot of land in Business Bay on the Dubai Creek for the construction of its first five-star hotel in the area. The Group has commenced the development of the five star “Gulf Hotel Business Bay” which will feature 230 rooms, three fine-dining restaurants, a variety of function halls and meeting facilities, a spa and fitness centre and other top class facilities including substantial car parking. This waterfront property, located 1.5km from Burj Khalifa and Dubai Mall, is now in design stage and is expected to open mid-2017. He further added that we are also in discussion with a group of investors to purchase another plot of land in the new Sh. Mohamed bin Rashid City in Dubai for the development of another 5 star hotel in the area.

Mr. Almoayyed took this opportunity to announce that with effect from January 2014, Mr Aqeel Raees, Chief Executive Officer of Gulf Hotels Group has been given additional responsibility and appointed to the GHG board in recognition of his major contribution to the development and success of the company.

Mr. Almoayyed also took this opportunity to thank Ms. Sahar Ataei who stepped down as Director of the Board and appreciate her contribution towards the success of Gulf Hotels Group during her tenure. He also welcomed Mr. Maher Salman Jabor Al Musallam, the Acting Chief Executive Officer of Gulf Air and Mr. Damien Jean Marie Balmet to the Board who were appointed in February 2014 as Nominees of Gulf Air.

Mr. Almoayyed praised the Management of Gulf Hotels Group and all its subsidiaries, led by Chief Executive Officer and Board Member, Mr. Aqeel Raees, thanking them for their hard work and determination which have led to these positive results.

CEO & Board Member Mr. Aqeel Raees added to Mr. Almoayyed’s comments and expressed his satisfaction with the results, announcing that the Group has completed the construction of

GULF HOTELS GROUP B.S.C. PRESS RELEASE the new commercial laundry which has commenced trading as Gulf Hotel Laundry Services, and is expected to make a big impact in the laundry market in 2014.

Mr. Raees added that a new 108 seat Indian Restaurant is under development within the Gulf Hotel and when opened in the 2nd half of 2014, will undoubtedly set new standards for Indian cuisine within Bahrain. Refurbishment of the Gulf Hotel’s Awal Ballroom and the renowned La Pergola Restaurant will take place in the summer of 2014. Designs are also being drafted to create a new smoking lounge and wine bar located off the Hotel’s Al Andalus Lounge, the fit out of which will start later in the year. Refurbishment of the South Wing building and the Gulf Executive Residence is scheduled to commence in July 2014 and be completed by the end of the year. In addition, the soft refurbishment of the Tower Block rooms will also be undertaken in the 2nd half of 2014.

He further stated that the development of the Gulf Residence Amwaj in conjunction with Lona Real Estate is nearing completion and the 173 unit, 4 star apartment-hotel will open in the 2nd half of 2014.

He continued stating that the construction of a new 3,100m² spa is also underway with completion scheduled for mid-2015. GHG is currently developing a 78 unit serviced apartment facility in Juffair, with construction expected to commence in the 2nd half of 2014 and take 18 months to complete.

Mr. Raees concluded by expressing his appreciation towards the management and staff of all of the Group’s divisions whose hard work and efforts have contributed towards achieving these positive results. He also stated that the success of any company comes down to its customer base, thanking the Groups valued customers for their continuous support.

GULF HOTELS GROUP B.S.C. PRESS RELEASE