Shangri-La Group 2021 Interim Results

Shangri-La Asia Limited (HKSE stock code: 00069) today reported the financial results of the Company and its subsidiaries (“Group”), and associates for the six months ended 30 June 2021. Highlights of the report included:

  • The consolidated revenues of the Group increased by 20.4% to USD545.8 million, compared to USD453.5 million for same period last year.
  • The weighted average occupancy of the hotels increased by 12 percentage points to 38%, compared to 26% for same period last year.
  • RevPAR increased by 29% to USD45, compared to USD35 for same period last year.
  • Effective share of EBITDA of the Group increased by 618% to USD199.6 million, compared to USD27.8 million for same period last year.
  • Operating PATMI of the Group was a loss of USD118.1 million, reduced from a loss of USD255.4 million for same period last year.
  • Total PATMI of the Group was a loss of USD59.8 million, reduced from a loss of USD282.6 million for same period last year.
  • 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 2021 improved as domestic travel demand rebounded significantly in Mainland China. In particular, the region’s hotel business performance for May 2021 was above the pre-pandemic period of May 2019. We have also seen business recovery in Hong Kong and Australia as a result of quarantine business in Hong Kong and increasing demands for staycations in both markets. Looking ahead, we are seeing a good start to travel rebound in certain regions with vaccination rates continuing to increase globally, though the recent outbreaks of the Delta variant is concerning. Our overall financial position remains healthy with adequate liquidity for a prolonged pandemic. However, with ongoing uncertainties, we will remain vigilant with cost control and efficiency measures in our operations.”

Shangri-La Group’s Chairman Hui Kuok said, “With the COVID-19 situation still evolving rapidly, the travel and hospitality industry faces continued challenges. As global citizens, we have a responsibility to bring a positive impact to the people and communities we connect with, particularly during the pandemic period. To ensure this, we continue to uphold the values of our ‘Shangri-La Cares’ pledge in our communities and remain committed to complying with local requirements to protect the safety and wellbeing of our guests and colleagues. We have also undertaken major initiatives across the Group to encourage people to get vaccinated. As of 25 August 2021, nearly 90% of our colleagues have received at least one dose of the vaccine. I am very grateful to our colleagues and partners for their dedication and support during this unprecedented time.”

“Although there are still uncertainties ahead, we are looking forward and plan to evolve in tandem with these changes while committing to looking after our guests and delivering on our brand promise of heartfelt hospitality. Our management team is closely monitoring the situation and I have every confidence that they will continue elevating our standards and adapting measures to ensure the continuity of our businesses,” she added.

As part of the forward-looking approach, the Group has implemented several measures designed to drive revenue and solidify its business position. The Group and Samty Co., Ltd (Samty Group, listed in Tokyo with stock code 3244) have entered into a sale and purchase agreement (“the SPA”), pursuant to which Samty Group will acquire an indirect 80 per cent interest in the land on which a Shangri-La hotel will be built in Kyoto, Japan. The remaining 20 per cent interest in the hotel will continue to be held by the Group. The completion of the SPA is conditional upon the fulfilment of certain conditions precedent and is expected to take place by the end of 2021.

Ahead of Shangri-La’s 50th Anniversary celebrations, the Group has unveiled a refreshed brand logo that presents a more contemporary look and feel while maintaining the brand equity of Shangri-La Hotels and Resorts. The ongoing brand evolution strengthens Shangri-La’s commitment to guests, colleagues, and partners. It is an important strategy that will empower the Group’s hotels to capture new opportunities by keeping pace with customers and their ever-changing expectations.

In addition, the Group is targeting multi-generational families and generating a new source of revenue with the launch of a Shangri-La family experience brand, Fam.ilyTM. These pilot immersive summer programs for families are available at selected hotels, and include a summer camp in Hong Kong, a surfing program in Sanya, and a theatrical program in Qinhuangdao.

As at the end of 30 June 2021, the Group has maintained a healthy balance sheet with cash and cash equivalent of USD743.4 million and total committed undrawn facilities of USD1.7 billion. The Board has proposed no interim dividend and management will continue to closely manage CAPEX plans as a prudent effort to conserve accessible cash reserves in the event of a prolonged period of uncertainties due to COVID-19.

For more details, please refer to the interim results announcement at: https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0827/2021082700861.pdf

About Shangri-La Group

Shangri-La Group is one of the world”s premier developers, owners and operators 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 more than 75 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, Bahrain, Mainland China, Cambodia, Indonesia and Saudi Arabia. For more information, please visit https://www.shangri-la.com/group/.

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