SHANGRI-LA GROUP RELEASES 2023 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 2023. |
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SHANGRI-LA GROUP RELEASES 2023 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 2023. |
Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2023-09-12
Highlights of the report included:
- Consolidated revenue of the Group increased by 60.3% to USD1,006.0 million, compared to USD627.5 million for the same period last year.
- The weighted average occupancy of hotels was 60%, compared to 34% for the same period last year. The weighted average RevPAR was USD103, an increase of 102%, compared to USD51 for the same period last year, driven by strong post-Covid recovery in Mainland China and Hong Kong, and increased travel demand in other parts of the world.
- Effective Share of Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) of the Group increased by 134.3% to USD396.5 million, compared to USD169.2 million for the same period last year, as a result of the revenue growth whilst deriving operating leverage on cost savings initiatives.
- Operating Profit After Tax from operating properties (“PATMI”) of the Group was USD64.6 million, an improvement of USD169.6 million from a loss of USD105.0 million for the same period last year, and also improved upon the USD64.2 million for the same period in 2019.
- Total PATMI of the Group was USD131.4 million, a significant improvement of USD289.6 million, compared to a loss of USD158.2 million for the same period last year.
- No interim dividend proposed.
Commenting on the interim results, Shangri-La Group’s Chief Financial Officer and Chief Investment Officer, Chua Chee Wui, said, “We achieved robust recovery in topline performance and growth across all markets where we operate during the first half of 2023. Our key markets of Mainland China and Hong Kong experienced a swift rebound after borders reopened in early 2023. Other major markets, particularly Singapore, have maintained strong momentum since 2022. We are encouraged by the increasing demand for luxury leisure travel in the post-Covid era, whilst also maintaining our leading position in corporate travel and MICE business. EBITDA and PATMI margins have improved compared to pre-Covid levels, despite rising interest rates as we derived operating leverage from our cost-saving measures initiated during the Covid period. Whilst we will continue to grow our revenue and margins, our focus remains on driving cash flow and managing debt.”
Shangri-La Group’s Chairman, Hui Kuok, said, “Over the past three years, we have steered the company through challenging times. During the pandemic, we executed a series of cost-management measures to drive efficiency. At the same time, our management team never lost sight of the fact that our success ultimately depends on our ability to identify and anticipate our customer’s needs, as well as our ongoing passion to innovate and enhance our brand. As travel rebounds, our continued deliberate and disciplined approach to cost management coupled with stronger topline performance lays a firm foundation for our Group as we move forward to a brighter future.”
“I would also like to take this opportunity to thank our colleagues for their dedication, as well as our valued guests, business partners and shareholders for their steadfast support during these testing times,” she added.
In terms of expanding our footprint and enhancing our product offering, the Group opened JEN Shenzhen Qianhai by Shangri-La in February 2023, our third hotel in this thriving Chinese city.
In addition, the Group’s commitment to sustainability has been recognised and reinforced through the signing of multiple Green Loan and Sustainability Linked Loan agreements, amounting to approximately USD3.5 billion (as of 31 July 2023). In July 2023, Shangri-La reached a new milestone in sustainable finance by drawing the Group’s first Sustainability Linked Dual-Currency Fixed Rate Loan.
As at 30 June 2023, the Group has maintained a healthy balance sheet with cash and bank balances of USD764.9 million and total committed undrawn facilities of USD975.0 million.
For more details, please refer to the interim results announcement at https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0830/2023083000967.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 76 destinations under the Shangri-La, Kerry, JEN by Shangri-La and Traders brands. Prominently positioned in Asia, the Group has a substantial pipeline of upcoming hotel and mixed-use development projects in Australia, Chinese Mainland, Cambodia, and Japan.
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