IFA Hotels shows 209% rise in profits

In its maiden annual results following a listing on the JSE in February, IFA Hotels & Resorts Limited (IFA SA) has outperformed expectations and achieved significant growth. Revenue for the year to June 2006 was up by 57 per cent to US$ 22.7 million and earnings before interest and tax (‘EBIT’) by 138 per cent to US$ 7.84 million.

Profit after tax leapt 209 per cent to US$ 5.92 million. Marking its national expansion outside of KwaZulu-Natal, the group purchased a stake for approximately US$ 10 million in the Cape Boschendal estate shortly before year-end.

IFA SA owns the exclusive Zimbali Lodge on KwaZulu-Natal’s north coast, rated by Condé Nast as one of the world’s top hotels, and a 50 percent stake in the joint venture with Moreland developing the multi-million dollar Zimbali Coastal Resort. In addition it owns a recently-acquired 19.25 per cent stake in Boschendal Limited.

Talal Jassim Al-Bahar, Chairman and Managing Director of IFA Hotels & Resorts (IFA HR), says, ‘We are pleased with these positive results in our first year as a publicly listed company and we forecast encouraging results in the future as we expand further into the African sub continent.’

The take-up of the Zimbali Coastal Resort has prompted a 3 million square meter expansion called Zimbali Lakes. In addition the joint venture recently acquired 2.54 million square meters of land on the south bank of the Tongaat River, opposite Zimbali Lakes. ‘The joint venture will leverage the Zimbali brand to successfully develop the south bank residential estate including a retirement village,’ says Al-Bahar.

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Werner Burger, President and COO of IFA HR, says that IFA HR Kuwait, which maintains an 85 per cent majority interest in IFA SA, is well-positioned to invest further in resort development in the country. ‘The recent Boschendal investment affirms the commitment to foreign direct investment and is the precursor to wider investment in Africa.’

Burger adds that The King Shaka airport soon to be completed between Zimbali and Durban, should enhance prospects and may spur IFA SA to seek further opportunities in that area.

Al-Bahar concluded, ‘The strong performance of our assets has laid a solid foundation for growth. We expect this to be boosted by South Africa’s increasing popularity as a tourist destination and a hunting ground for international property investors.’

IFA Hotels & Resorts (IFA HR) are leaders in the development of premier integrated and mixed-use hotel and tourism resort projects throughout Europe, the Middle East, the Indian Ocean region and Africa

Listed on the Kuwait Stock Exchange, with a market capitalization of US$ 1 billion, IFA HR’s main shareholder is Kuwaiti based International Financial Advisors (IFA). IFA HR listed on the Johannesburg Stock Exchange Feb.27th 2006.

Globally, IFA HR has entered into strategic alliances and Joint- Venture partnerships with leading companies such as Kingdom Hotel Investment Group (Saudi Arabia), Nakheel (UAE), United Investments Portugal, a strategic alliance with RCI (part of the Cendant’s Group) and Moreland Developments (Pty) Ltd (South Africa), Boschendal Ltd, ( South Africa).

IFA HR aims to link its resorts to new parts of the globe, such as the US, the UK, Mauritius, Eastern Europe and the Far East. This will offer investors and tourists access to world class facilities through a network of hotels, residential resorts, vacation and residence club destinations.

IFA HR’s Worldwide Projects:

DUBAI

IFA HR is the largest investor on The Palm Island, Jumeirah.

? Fairmont Palm Hotel & Resort - A 400 room 5 star hotel on the trunk of The Palm, Jumeirah,

? Fairmont Palm Residence - 558 luxury Apartments

? The Palm Residence - Al Nabat and Al Haseer - two shoreline residential buildings with 246 apartments on the trunk.

? The Palm Golden Mile development - A Joint Venture with Nakheel, developers of The Palm. A project featuring over 860 luxury apartments, 19,500 sq. meters of office space and 22,000 sq. meters of retail space comprising of boutique shops and restaurants, stretching along a 1.5 kilometre of canal side corniche. ( www.thepalmgoldenmile.com )

? A Mixed-Use Resort - A 1,000 room destination on the Crescent of The Palm (adjacent to Atlantis) comprising a Hotel, Vacation Club, Residences and Private Residence Club, to be managed by Fairmont Hotels & Resorts,

? Laguna Tower - A 40 storey mixed-use tower located in the Jumeirah Lake Towers, next to the Dubai marina, comprising residential apartments and a Hotel - Residence managed by Mövenpick Hotels & Resorts, the Mövenpick Hotel & Residence Laguna Tower Dubai, in addition to retail and restaurants along the waterfront.

LEBANON

? Alabadiyah Hills - A luxurious mountainside retreat in Bhamdoun, overlooking Beirut. This 7.5 hectare project will comprise of high end residential villas, town houses, apartments, in addition to a world renowned spa and beauty clinic, which will be managed by Kempinski Hotels.

? Four Seasons Hotel -IFA HR has a major share in the upcoming development.

PORTUGAL

IFA HR is the force behind the super-premium Sheraton Algarve Hotel ( www.luxurycollection.com ) and Pine Cliffs Resort ( www.pinecliffs.com ), part of Starwood’s Luxury Collection.

SOUTH AFRICA

IFA HR listed on the JSE in 2006.

? Zimbali Coastal Lakes & Resort - IFA HR owns a 50% share in the luxurious resort, a 680 hectare prime residential and resort estate located on the North Coast of KwaZulu-Natal. ( www.zimbali.co.za )

? Zimbali Lodge - IFA HR owns the exclusive Zimbali Lodge, managed by Sun International Limited. ( www.zimbalilodge.co.za )

? Fairmont Zimbali - A new 150 key resort, with 115 Apartments, 17 luxury villas and 10 Fractional ownership units to be managed by Fairmont Hotels & Resorts. ( www.fairmontzimbali.com )

? Boschendal Limited - A mixed_use resort development at this historic Cape Estate

KENYA:

? Lonrho Hotels - IFA HR has a majority stake in 5 Lonrho Hotels in Kenya ( www.lonrhohotels.com )

ZANZIBAR:

? Mövenpick Resort & Spa - Zanzibar- Located on the historic Tanzanian spice island, with joint venture partner Kingdom Hotel Investments, the new resort will be re-opened in the last quarter of 2006 and will be managed by Mövenpick Hotels & Resorts. ( www.zanzibarbeachresort.com )

UNITED KINGDOM:

? YOTEL - IFA HR is the majority investor in the two YOTEL hotels in Heathrow and Gatwick. ( www.yotel.com )

Investment And Hospitality Products:

IFA HR programme of brand acquisition and developer partnerships will continue into the future and is evidenced by the ever growing strength of its product range:

? IFA - Hotels & Resorts

? IFA Properties

? IFA - Lifestyle Membership Clubs

? IFA - Vacation Ownership

? IFA - Fractional Ownership

? IFA - Hotel Ownership

? IFA Yacht Ownership

? IFA - Residences

? IFA - Travel & Tourism

This unique product range enables IFA HR to continuously anticipate and deliver to the varying property investment and leisure requirements across the globe.
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