Mabanee profits declined during the second quarter of 2026 as weaker hotel demand affected overall earnings. Mabanee profits faced pressure from lower hospitality activity despite steady performance across the company’s shopping malls. Meanwhile, retail properties continued attracting visitors throughout the reporting period.
The Kuwaiti developer reported net profit of KD15.5 million during the second quarter. This represented an 8 percent decline compared with the same period last year. At the same time, total revenue slipped 6 percent to KD32.2 million as the hospitality business experienced softer demand.
Hotel operations recorded the largest decline during the quarter. Gross profit from the hospitality segment dropped by 78 percent. Travel disruptions and reduced visitor activity contributed to weaker occupancy across the company’s hotel portfolio. Consequently, hospitality earnings fell significantly compared with last year.
The company’s shopping mall business remained resilient despite regional challenges. Gross profit from malls declined by only 1.7 percent during the quarter. In addition, The Avenues maintained an occupancy rate of 98 percent. Visitor numbers also increased slightly, reflecting continued consumer demand.
Strong retail performance helped offset part of the weakness in hospitality operations. Shopping centers continued benefiting from stable tenant demand and consistent customer traffic. As a result, commercial real estate remained the company’s strongest business segment.
Airport disruptions and event cancellations reduced hotel bookings during the reporting period. These conditions affected occupancy at the company’s Hilton Garden Inn and Waldorf Astoria properties. Lower visitor numbers continued weighing on hotel revenue throughout the quarter.
Financial results for the first half of 2026 also reflected mixed business performance. Hospitality revenue declined by nearly 30 percent compared with the previous year. However, revenue from shopping malls and office properties remained largely stable during the same period.
Half-year net profit attributable to shareholders reached KD32.4 million. This represented a 36 percent decline from the previous year. However, last year’s financial results included one-time gains from a land sale. Therefore, the comparison reflected the absence of exceptional income rather than a sharp deterioration in core operations.
Market analysts believe the company’s retail portfolio continues demonstrating strong resilience. Stable occupancy levels and consistent rental income continue supporting long-term financial performance. Meanwhile, the hospitality segment remains more sensitive to regional travel conditions.
Despite recent challenges, analysts remain optimistic about the company’s future expansion plans. Mabanee continues investing in major retail developments across Saudi Arabia. These projects could provide new sources of income over the coming years.
Construction work on two projects experienced schedule adjustments during the reporting period. The Aventura Mall opening moved from August to October because of supply chain delays. In addition, the Hilton Kuwait Mangaf Resort is now expected to open in December instead of September.
Management also warned that prolonged regional tensions could increase construction costs. Supply chain disruptions and logistical challenges continue creating uncertainty for project timelines. Even so, development work continues across the company’s expanding portfolio.
Analysts expect Saudi projects to become major contributors to future earnings. Upcoming developments in Riyadh and Khobar could generate significant operating income once fully completed. These projects form an important part of the company’s long-term growth strategy.
Expansion into Saudi Arabia supports Mabanee’s efforts to diversify its business beyond Kuwait. New retail destinations could strengthen recurring income while reducing dependence on existing assets. Furthermore, growing consumer demand in the Saudi market offers additional opportunities for long-term growth.
Mabanee profits continue reflecting different performance across its business segments. Retail operations remain stable while hospitality faces temporary pressure from regional travel disruptions. As tourism conditions improve and new projects open, Mabanee profits could strengthen alongside expanding operations in Kuwait and Saudi Arabia.
