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Sharm Dreams hotels occupancy rates plummet due to coronavirus - Daily News Egypt

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Sharm Dreams hotels occupancy rates plummet due to coronavirus

Company can sustain the two-week suspension, if extended it will suffer losses

Egyptian hotel company Sharm Dreams for Tourism Investment said on Monday that the company’s hotels have zero occupancy rate at the moment due to coronavirus pandemic.

Amr Helmy, the company’s investors relations director told Daily News Egypt that all hotels are almost completely shut, due to the suspension of the tourism activities.

Sharm Dreams Group owns six hotels and resorts, all of which are located in tourist areas. The most prominent of which are: Sharm Dreams Resort, Cleo Park, and Fayroz Resort. The three resorts are located in Sharm El Sheikh.

Fayroz Resort is owned by Rowad Misr for Tourist Investments, which Sharm Dreams has a 99.5% stake in, while the rest are directly owned by Sharm Dreams.

Helmy added that the precautionary measures taken by the government for two weeks to curb the coronavirus outbreak can be sustained if they are not extended.

If the suspension period is extended, the diminishing occupancy rate will continue which will result in significant losses and negatively affect the company’s financial statements during the coming periods,” Helmy added.

The financial statements of Sharm Dreams for Tourism Investment revealed that in 2019, there was a turnaround in profitability, recording a net profit of EGP 65.44m since the beginning of January 2019 until the end of December 2019, compared to EGP 25.9m losses during 2018.

The company’s revenue increased during the past year, to record EGP 106.6m at the end of 2019, compared to EGP 29.54m in 2018.

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