SINGAPORE - Hotel group Shangri-La Asia posted a net profit of US$131.4 million (S$177 million) for its first half ended June 30, 2023, from a loss of US$158.2 million the same period in 2022.
This was mainly due to the robust recovery of its hotel business, particularly in Hong Kong and mainland China, which experienced strong demand following the easing of cross-border restrictions earlier this year, the company said on Wednesday.
Earnings per share stood at 3.688 US cents for the half-year period, reversing from a loss of 4.429 cents the previous year.
Revenue for the first half rose 60.3 per cent to US$1 billion, from US$627.5 million a year earlier.
The combined effects of rebounding travel activities, relaxed pandemic related restrictions, and pent-up consumer demand catalysed the revenue growth during the period, the company said. No dividend was declared for the half year, unchanged from the year before.
By geography, total revenue from its Singapore hotel properties rose 72.4 per cent to US$128.8 million in the first half.
Occupancy was 79 per cent for the first half of the year, up from 44 per cent a year earlier, while revenue per available room (RevPAR) rose 90 per cent to US$205.
The company noted that its Singapore hotels have continued with their strong momentum since the reopening of borders in 2022, and occupancy and average daily rate have exceeded 2019’s levels due to surging demand by international travellers.
In Hong Kong, revenue from hotel properties increased by 133.4 per cent to US$139.6 million, mainly driven by reopened borders with mainland China and the lifting of polymerase chain reaction tests in early 2023.
Occupancy rose to 65 per cent, from 34 per cent a year earlier, while RevPAR grew to US$182 from US$65.
Meanwhile, total revenue from its mainland China hotel properties increased by 74.7 per cent to US$328.7 million, as cities from all four tiers saw strong business recovery after travel restrictions were lifted. Overall occupancy in mainland China stood at 60 per cent, compared to 32 per cent a year earlier, and RevPAR rose to US$72 from US$30.
The company said it was “particularly encouraged” by rising luxury leisure travel demand post-Covid-19, noting that it has seen strong recovery and growth in all markets where it operates.
It remains optimistic for the rest of 2023, adding that it will remain vigilant with its costs and balance sheets even as business had significantly recovered.
Shares of Shangri-La Asia, which has a primary listing on the Hong Kong Stock Exchange, closed flat at HK$5.50 on Wednesday, before the announcement. THE BUSINESS TIMES
