Bahrain’s Restaurant Groups Report a Softer Year as Visitor Numbers Fall
AlAbraaj slipped to a first-quarter loss and Gulf Hotels Group’s half-year profit fell 46 per cent, as both pointed to weaker visitor demand. Both are still opening new venues.
Two of Bahrain’s larger hospitality operators have reported weaker figures for 2026, and both link them to fewer visitors. AlAbraaj Restaurants Group, which listed on the Bahrain Bourse in 2024, reported a first-quarter net loss attributable to shareholders of BD197,606, against a profit of BD125,810 a year earlier. Gulf Hotels Group, whose portfolio includes the restaurant Takht Jamsheed and Gulf Catering Company, said first-half net profit fell 46 per cent to BD2.81 million.
AlAbraaj’s first quarter
In its Bahrain Bourse statement of 14 May, AlAbraaj said regional conditions had cut GCC tourist arrivals and local dine-out spending in Bahrain, lowering footfall, while disrupted international supply chains had raised procurement costs and squeezed margins. Sales for the quarter were BD3.5 million against BD3.6 million a year earlier, a fall of 2.6 per cent. Core restaurant operations recorded a loss of BD180,020, compared with a profit of BD146,982 in the first quarter of 2025. The company said it had responded with cost controls, supplier diversification, local marketing and promotions.
It has kept opening. Lumee at City Centre Bahrain and Orso Trattoria & Café at The Avenues Bahrain opened in the quarter and, the company said, supported sales. Two new café concepts are due in Bahrain in summer 2026, and a flagship AlAbraaj in Riyadh is planned. For the whole of 2025, Reuters reported a net profit of BD777,462.
Gulf Hotels Group’s half-year
Gulf Hotels Group’s half-year statement, reported by Bahrain This Month on 7 August, showed second-quarter net profit of BD1.66 million, down 40 per cent from BD2.77 million, on revenue of BD5.98 million, down 41 per cent. Over the half, revenue was BD12.81 million against BD18.69 million a year earlier. The group said market occupancy fell from 57.3 per cent to 36.8 per cent and revenue per available room dropped by about 43 per cent. It cited regional tensions, weaker air connectivity and travel demand, and the postponement of the Bahrain Grand Prix.
Chief executive Ahmed Janahi described the period, especially the second quarter, as exceptionally challenging for Bahrain’s hospitality industry. The group’s food-and-beverage activity nonetheless continued to widen: Takht Jamsheed opened at Marassi Galleria, a Bayfront Al Khobar location is in preparation, and Gulf Catering Company won education-sector contracts in Bahrain. Management said the pace of recovery depends on regional developments, traveller confidence and the return of international connectivity.
What the two statements share
The explanations differ in detail, but they point the same way. Both companies tie their results to the flow of visitors, and AlAbraaj adds local dine-out spending and supply costs to the list. Both also describe openings that went ahead regardless, which suggests operators are planning for a recovery rather than a cut-back. AlAbraaj filed its second-quarter and half-year results in August.
For how different parts of the Gulf restaurant market respond to the same conditions, see our report on the Gulf restaurant economy.
Sources & fact-check5
- Financial results for the first three months of 2026Bahrain Bourse (AlAbraaj Restaurants Group press brief), 14 May 2026
- Gulf Hotels Group reports first-half profitBahrain This Month, 7 August 2026
- Announcement of the Board of Directors meeting to approve the financial resultsBahrain Bourse (AlAbraaj Restaurants Group notice), 14 June 2026
- Al Abraaj Restaurants Group FY profit 777,462 dinarsMarketScreener (Reuters), 1 March 2026
- AlAbraaj Announces Strong ProfitsDaily Tribune (Bahrain), 13 May 2025
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