Orascom Hotels & Development (OHD) reported its financial results for 1Q16. Revenue dropped 37% Y-o-Y to EGP284mn, on the back of lower land sales (1Q16: EGP29.0mn, 1Q15: EGP189.2mn) and lower revenue from hotels (1Q16: EGP85.6mn, 1Q15: EGP121.9mn). Gross profit dropped to EGP23.0mn, down 88% Y-o-Y, translating into a gross profit margin of 8.1%, down from 42.9% in 1Q15. Net loss to shareholders was EGP96.7mn (1Q15: EGP52.7mn in net profit) – also weighed down by EGP69mn in FX losses. Gross debt added 9.3% over the quarter, reaching EGP3.58bn, while its net-debt-to-equity to inched up to 1.06x, from 0.91x in December. Negotiations with the banks for a three-year grace period (instead of the agreed-upon two) are ongoing, with results expected in June/July 2016, according to management.   Contracted sales declined 20.1% Y-o-Y to EGP92.4mn in 1Q16. Management indicated the launch of Fanadir Bay in El Gouna in April was successful (total launch value: EGP60mn), which should help Q2 numbers. The hotel segment continued to suffer, with revenue dropping 30% Y-o-Y to EGP85.6mn and adjusted negative EBITDA recording EGP7.9mn (1Q15: EGP3.1mn, also in the red). Average occupancy rate at El Gouna dropped from 62% in 1Q15 to 53% in 1Q16, while its total revenue per available room (TRevPAR) dropped from EGP373mn to EGP332mn. (Company disclosure)