Abu Dhabi National Hotels (ADNH) has agreed to acquire the 50% stake held by Compass Group International in their joint venture (JV) operations in the UAE, ADNH Compass.
This move is aligned with ADNH's strategic plan to enhance revenues and profit margins from its key business segments.
The transaction is expected to be finalised shortly and could result in an additional annual net profit gain of Dh100m ($27.2m).
The ADNH Compass JV is recognised as a provider of food and manpower services to corporates and organisations.
Meanwhile, Compass Group generated revenues of £31bn in 2023.
In the previous year, ADNH's revenues stood at Dh1.6bn ($435.6m), up from Dh1.46bn ($397.5m) in 2022 while its net profit increased to Dh422m ($114.8m) in 2023 from Dh415m in 2022, Gulf News reported.
For the past six years, the company has been consistently expanding its hotel portfolio in the UAE through strategic acquisitions, including the purchase of five properties from Emaar.
These properties were recently placed under new hospitality management contracts.
Last December, ADNH commenced a collaboration with Kempinski Hotels, marking the start of a rebranding initiative.
As of 1 January 2024, Kempinski is operating Kempinski The Boulevard Dubai and Kempinski Central Avenue Dubai, which were formerly known as Address Boulevard and Address Dubai Mall, respectively.
In related industry news, three Emaar Hospitality hotels were recently rebranded to Marriott properties. The former Address Dubai Marina has been renamed JW Marriott Hotel Marina, becoming Dubai's second JW Marriott property.
Additionally, Vida Downtown and Manzil Downtown have transitioned to Marriott management as Hotel Boulevard, Autograph Collection, and The Heritage Hotel, Autograph Collection, respectively, What’s On reported.
