Impact of COVID-19 on Jordan’s Tourism Hotel Industry (Part 2)
The biggest players in town (and one small)
ZARA INVESTMENT HOLDING (Ticker: ZARA)
ZARA is one of the largest publicly traded hotel owner and operator in the country. As of 2020, there were 37 5 star hotels in Jordan with a total of 9,250 rooms. ZARA owns 23% of these.
It has various investments in Jordan, most notable of which are:
Jordan Hotels & Tourism (Ticker: JOHT) 51.6%, owner and operator of Intercontinental Amman
Mövenpick Nabatean 100%
Mövenpick Petra 100%
Grand Hyatt Amman 100%
Mövenpick Dead Sea 100%
Mövenpick Aqaba 100%
Mövenpick Tala Bay 84.8%
(As of 1/7/2021)
Share price: 0.48
Market Capitalisation: 72 million JODs
Equity ratio: 87%
Revenue in 2021: 24 million JODs
Profit/Loss: -14.1 million JODs
Revenue drop due to COVID: -66.8%
Revenue/Share price: 3
Major shareholders: Libyan Sovereign Wealth Fund 13%, Social Security Corporation 12.3%, Cairo Amman Bank 6.6%, Arab Bank 1.6% et al.
Other information: ZARA receives preferential rates on loans from Cairo Amman Bank
JORDAN HOTELS & TOURISM (Ticker: JOHT)
JOHT was established in 1955 and started operating the Intercontinental brand in Amman since 1963.
Share price: 2.04
Market Capitalisation: 20.4 million JODs
Equity ratio: 89%
Revenue in 2021: 5.8 million JODs
Profit/Loss: -3 million JODs
Revenue drop due to COVID: -65%
Revenue/Share price: 3.5
Major shareholders: ZARA 51.6%, Cairo Amman Bank 9.75%, Etihad Bank 3.32%
Other information: N/A
AL-RAKAEZ INVESTMENT CO. (Ticker: RICS)
Unlike the previous hotels on this list, RICS is the only 4 star hotel (Winter Valley Tourism Investment Co. trading under WIVA:ASE also operates a 4 star hotel, the Ramada Dead Sea, however the company is trading OTC). RICS owns and operates Ayss hotel in Amman.
Share price: 0.31
Market Capitalisation: 3.875 million JODs
Equity ratio: 87%
Revenue in 2021: 0.66 million JODs
Profit/Loss: -0.73 million JODs
Revenue drop due to COVID: -76%
Revenue/Share price: 5.87
Major shareholders: Foreign individual or corporate investors 🇦🇪 50.8% 🇰🇼 17% 🇮🇶 4.4%
In the 3rd and final instalment to this newsletter, we will tackle the last 3 hotels: Winter Valley, Sheraton Amman and Tala bay.