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Alrov Properties, Tel Aviv, Israel, reports a 48% Jump in First Quarter Revenue;
on Schedule for June opening of Jerusalem's Mamilla Hotel


Globes, Tel Aviv, IsraelMcClatchy-Tribune Regional News

May 21, 2009--"The war in the south and the global economic situation has materially affected global and Israeli tourism and affected the results of the David Citadel Hotel. Nonetheless, we still consider the hotels industry in Israel and internationally to be a primary growth engine in which we will invest most of our efforts," said Alrov chairman and CEO Alfred Akirov today. He added, "We will open the Mamilla Hotel in Jerusalem in June. Construction of a hotel in Amsterdam is on schedule and it is due to open in early 2011. Progress on the Cafe Royal in London is also on schedule."

Alrov (Israel) Ltd. (TASE: ALRO) subsidiary Alrov Properties and Lodgings Ltd. (TASE: ALRPR) today published its financial report for the first quarter of 2009. The company posted a net profit of NIS 43.5 million (NIS 2.14 per share), compared with a net loss of NIS 40.5 million for the corresponding quarter of 2008.

Net profit attributable to majority shareholders was NIS 43.7 million for the first quarter, compared with a net loss attributable to majority shareholders of NIS 38.6 million for the corresponding quarter.

Alrov Properties' revenue rose 48 percent to NIS 125.9 million for the first quarter from NIS 84.9 million for the corresponding quarter.

Operating profit nearly quadrupled to NIS 43.4 million for the first quarter from NIS 11.7 million for the corresponding quarter, and cash flow from operations rose 53 percent to NIS 26.5 million from NIS 17.3 million for the corresponding quarter.

Alrov Properties' rent from its flagship Mamilla hotel and commercial project opposite the Old City of Jerusalem rose to NIS 7.4 million for the first quarter from NIS 3.2 million for the corresponding quarter. Rent from foreign properties rose 26.3 percent to NIS 39.3 million.

Alrov Properties' share rose 3.3 percent by midday to NIS 43, but Alrov Israel's share fell 2 percent to NIS 47.50.

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Copyright (c) 2009, Globes, Tel Aviv, Israel

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