Jabal Omar posts resilient H1 2026 results with revenues rising 16% year-on-year

Logo of Jabal Omar Development Company

Jabal Omar Development Company (SASE: 4250; “JODC”) today reported its financial results for the first half ended June 30, 2026. Revenues totaled SAR 1,454 million, up 16% year-over-year, primarily driven by stronger demand from domestic guests, Hajj season and the opening of the Rotana Hotel, further supported by the continuous optimization of our pricing strategy. The adjusted EBITDA grow to SAR 793 million, representing 15% increase compared to the same period last year. Adj. EBITDA margin stood at a healthy 54.5% for 1H 2026.

Saleh Al-Habdan, CEO of Jabal Omar Development Company, commented:

“As the regional conflict affected international and regional tourist arrivals. Management responded decisively by targeting domestic demand. The strong performance of our core business during this period showcases the quality of our assets and the resilience of our operating model. We expect this momentum to continue as our new assets mature and the geopolitical environment improves.

Management remains firmly focused on executing our strategy, completing construction of Phase 4, enhancing portfolio performance, and reducing debt. The recent government approval allowing non-Saudis to own real estate is a significant positive development that will expand the potential investor base in the Jabal Omar area, support stronger demand, and contribute to improved pricing. We intend to capitalize on this opportunity by offering existing hotel units for sale, which will help accelerate debt reduction.

Jabal Omar is at a pivotal stage in its journey. After nearly two decades of investment, we are approaching the completion of our capex cycle. A significant portion of our current portfolio is now in ramp-up phase, as these assets stabilize, we expect a meaningful step-up in profitability and cash flow, strengthening our balance sheet and creating further capacity to reduce debt. We remain confident in the long-term outlook for the business and the exceptional quality of our asset base.”

Operational and Financial Review

Segment Results & Key Operational Metrics

Hotels Segment:

Revenues from the Hotels segment increased 17% year-over-year to SAR 1,339 million in 1H 2026, supported by the ramp up of new hotels and the opening of the Rotana hotel. In response to the geopolitical situation, we adjusted our commercial strategy to focus on domestic travelers. This approach generated a strong response from domestic and GCC guests, helping offset the softer performance seen in the first quarter.

Total available keys across the hotel portfolio grew 11% year-over-year to 6,591. Our RevPAR improved 7% year-over-year to SAR 948, while overall occupancy remained broadly stable at 73%, even after the addition of 652 new keys amid the opening of Rotana hotel demonstrating the strength of market demand and the effectiveness of our commercial strategy.

Commercial Centers Segment (Malls):

Revenues from the Commercial Centers (Malls) segment grew 6% year-over-year to SAR 110 million, driven by an increased in occupied GLA by 10% year-over-year to 34,288 square meters, underscoring continued demand for retail space across the company’s properties.

Consolidated Income Statement

Total revenues for 1H 2026 stood at SAR 1,454 million, up 16% year-over-year. The increase was primarily driven by the ramp-up in performance of the new hotels, the growth of our asset portfolio, and strong demand from domestic tourists, which offset the impact of lower foreign traveler arrivals during the period. As a result, our gross profit increased 16% year-over-year to SAR 607 million.

Other operating income for the period stood at SAR 4 million, compared to SAR 907 million in the same period last year, when the sale of assets contributed SAR 918 million to other income. Meanwhile, general and administrative expenses increased by 5% year-on-year to SAR 53 million. Impairment charge for the period came in at SAR 55 million, down 79% year-on-year. Excluding, the impact of non-recurring items such as land sales, impairment charges, and reversals, adjusted EBITDA grew 15% year-over-year to SAR 793 million.

Finance costs declined 31% year-over-year to SAR 219 million, reflecting debt repayment funded by land sale proceeds, lower borrowing cost and one-time accounting adjustment. 1H 2025 results also included a one-off positive impact of SAR 23 million gain on change in fair value of financial instruments, primarily related to the debt-to-equity swap.

As a result, net profit came in at SAR 275 million in 1H 2026, compared to SAR 904 million in 1H 2025, with the year-over-year variance driven by non-recurring gains in the prior period, namely the land sale gain and the fair value gain on the debt-to-equity swap.

Adjusted funds from operations increased by 25% year-on-year to SAR 561 million for 1H 2026, compared to SAR 447 million in 1H 2025 driven by performance of the hotel segment, and lower interest expenses on the back of reduced debt obligations.

Consolidated Balance Sheet

As part of its strategic priorities, the company has placed a lot of focus on reducing its debt while enhancing shareholder value. Total assets were mostly flat compared to 2025. Gross debt decreased 2% from the year-end, to reach SAR 9.1 billion by 1H 2026. During the quarter, we also refinanced a SAR 2 billion loan, reducing our debt obligations in the near term and giving us more flexibility. Meanwhile, total equity grew 2% from 2025 to reach almost SAR16 billion for 1H 2026.