The Entreprise de Gestion Hôtelière El Aurassi (EGH El Aurassi) is a hotel management company that includes four hotels within its current portfolio. These include the five-star Hôtel El Aurassi in Algiers and three accommodations in southern Algeria: Hôtel Rym in Beni Abbès; Hôtel El Mehri in Ouargla; and Hôtel El Boustene in Ménéa. The three southern hotels were included under the umbrella of EGH El Aurassi following a government decision in January 2010.
Hôtel El Aurassi was inaugurated in 1975, and in 1991 the hotel became a joint stock company with a capital of AD40m (€368,000), the entirety of which was retained by the government of Algeria. In 1995 the share capital was increased to AD1.5bn (€13.8m) following the incorporation of the company’s financial reserves, and in 1999 the hotel launched a public offering amounting to a 20% stake in the company. In February 2000, EGH El Aurassi was listed on the Algiers Stock Exchange.
The company’s flagship asset, the Hôtel El Aurassi, has a variety of business lines including catering and the hosting of conferences and events. The facility itself includes 604 beds in 453 rooms; four restaurants with a combined capacity for 1000; a pool with barbecue; five tennis courts; a night club; a fitness centre and a piano bar.
In terms of activity, the company performed well in 2014: overall turnover increased by 41.7% and net income increased by over 100%. In 2013 modernisation and renovation works were launched for the southern units, likely resulting in a decrease in activity; however, increased business at the Hôtel El Aurassi helped compensate for this, following extensive renovations completed in 2012.
EGH El Aurassi’s key business lines accounted for AD3.07bn (€28.2m) in 2014, compared to AD2.17bn (€20m) in 2013. Accommodations had a turnover of AD1.57bn (€14.4m), of which approximately 99% was accounted for by the Hôtel El Aurassi, where rooms are priced at AD24,500 (€225) per night. The total number of room nights was 68,471, equivalent to an occupancy rate of 54.65%.
Food and beverages achieved a turnover of AD1.3bn (€12m) in 2014, of which AD1.2bn (€11m) was realised by the Hôtel El Aurassi. Other auxiliary activities generated a turnover of AD201m (€1.8m), with this coming entirely from the company’s flagship hotel. For the first half of 2015, revenues were down slightly (-2.34%) compared to the first half of 2014. Net profits meanwhile fell by 3.75% and earnings per share was AD101,600 (€935) in H1 2015 against AD105,556 (€971) in H1 2014.
The company has benefitted from a number of government measures aimed to modernise the organisation and preserve jobs. These include financial restructuring, loans at subsidised rates, support by the Treasury in the form of capitalised interest, financing of modernisation efforts with a grace period of seven years and a deadline for repayment of 15 years.
Regarding the rehabilitation programme of the Hôtel El Aurassi, renovation work was launched in November 2009 and was completed in March 2012. The overall cost of the programme was €79.1m, of which AD6.03bn (€55.5bn) was financed by Crédit Populaire d´Algérie (CPA). EGH El Aurassi’s southern hotels have also benefitted from a modernisation programme at an overall cost of AD1.94bn (€17.8m), funded entirely by the Treasury and CPA.
For 2015 EGH El Aurassi has set a sales target of AD3.83bn (€35.2m), representing an average occupancy rate of about 50% and a restaurant attendance rate of 30%. The average room price has held at AD18,948 (€174). Total expenses are estimated at AD2.36bn (€21.7m), or a rate of 61.7%. There is an expected net profit of AD1.13bn (€10.4m), which represents a return-on-sales of 29.5%.
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