SHANGRI-LA GROUP 2022 INTERIM RESULTS
Shangri-La Asia Limited (HKSE stock code: 00069 / SGX stock code: S07) today reported the financial results of the Company and its subsidiaries (“Group”), and associates for the six months ended 30 June 2022. Highlights of the report included: |
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SHANGRI-LA GROUP 2022 INTERIM RESULTS
Shangri-La Asia Limited (HKSE stock code: 00069 / SGX stock code: S07) today reported the financial results of the Company and its subsidiaries (“Group”), and associates for the six months ended 30 June 2022. Highlights of the report included: |
Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2022-09-02
- Consolidated revenue of the Group increased by 15.0% to USD627.5 million, compared to USD545.8 million for same period last year, driven by recovery of hotel business in almost all of our destinations.
- Effective share of EBITDA of the Group decreased by 15.2% to USD169.2 million, compared to USD199.6 million for same period last year, mainly due to challenges in Mainland China hotels.
- Operating PATMI of the Group was a loss of USD105.0 million, reduced from a loss of USD118.1 million for same period last year, mainly due to a decrease in depreciation.
- Total PATMI of the Group was a loss of USD158.2 million, compared to a loss of USD59.8 million for same period last year, mainly due to an exceptional foreign exchange loss of USD106.6 million arising from a 44% depreciation of Sri Lankan Rupee during the period.
- Propose no interim dividend.
Commenting on the interim results, Shangri-La Group’s Chief Executive Officer, Lim Beng Chee, said, “The Group’s first half-year results for 2022 improved as travel rebounded in destinations where travel restrictions and entry requirements were relaxed. For destinations that have been open for longer, we are beginning to see corporate and MICE demand gathering momentum. From Q2 2022, we saw a steady increase in revenue in our Singapore and Malaysia hotels, arising from the easing of pandemic controls. Despite ongoing restrictions, our Hong Kong hotels also saw a gradual recovery of business, largely driven by demand for staycations and quarantine hotels, while the operating performance of our hotel business in Mainland China started to recover from May despite a challenging four months at the beginning of the year. Going forward, we remain cautiously optimistic as the travel and hospitality sectors continue to recover. Our financial position remains healthy.”
Shangri-La Group’s Chairman Hui Kuok said, “As we continue to navigate volatile economic conditions, our discipline on cost management has allowed us to enhance our performance. Looking ahead, I remain optimistic about the growing demand for luxury hospitality in our core markets and emerging opportunities to target new customer segments, and will continue to keep our sights on the horizon for new opportunities to provide our customers with more curated experiences and personalised services. This includes the launch of the rebranded Shangri-La Circle in April 2022, which gives our customers more ways to live the good life with Shangri-La. Thank you once again to our guests, business partners, shareholders and colleagues for your unwavering support.”
“With over 50 years of experience in Asia, we are deeply embedded into local society and as such continue to challenge ourselves to contribute positively towards our communities and environment. For example, we launched “Shangri-La Cares, Hong Kong” to extend our hospitality into the local community by offering 240,000 hot meals and essential supplies during the city’s fifth wave of Covid-19 from February to April 2022. Over the next five years, we aim to reduce the use of single-use plastics in our hotels by 50% over our 2019 baseline and have started making long-term investments such as installing filtered water taps in guestrooms and providing more sustainable takeaway food packaging options,” she added.
Taking a forward-looking approach, the Group is solidifying its business position with new hotels and initiatives designed to drive revenue and appeal to all guests.
The Group expanded into two new destinations in 1H 2022. In Mainland China, Shangri-La Nanning opened in a 403-metre architectural icon in the Guangxi region.
With the opening of Shangri-La Jeddah, a new luxury landmark on the Jeddah waterfront and Red Sea, the Group made its debut in the Kingdom of Saudi Arabia.
In addition, the Group’s sustainable targets have been recognised and cemented through the signing of a USD250 million Sustainability Linked Loan with Heng Seng Bank.
During the period, the Group has also signed a USD46 million Green Loan with the Bank of East Asia.
As at the end of 30 June 2022, the Group has maintained a healthy balance sheet with cash and cash equivalent of USD651 million and total committed undrawn facilities of USD1.2 billion. The Board has proposed no interim dividend.
For more details, please refer to the interim results announcement at https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0826/2022082600677.pdf .
About Shangri-La Group
Shangri-La Group is one of the world’s premier developers, owners and managers of hotel and investment properties which comprises office buildings, commercial real estate and serviced apartments/residences. The Group’s other principal activities include hotel management services as well as property development for sale. It currently owns and/or manages over 100 hotels globally in 78 destinations under the Shangri-La, Kerry, JEN and Traders brands. Prominently positioned in Asia, the Group has a substantial pipeline of upcoming hotel and mixed-use development projects in Australia, Mainland China, Cambodia, and Japan.
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