Leisure and corporate travellers returning to Asia after the financial crisis has boosted luxury hotelier Shangri-La Asia's earnings and the good times are set to continue.
Net profit before non-operating items climbed to US$71.1 million in the first six months of this year from US$12.9 million in the same period last year. The momentum continued in July and August and was likely to prevail in the rest of this year, executive director Gregory Dogan said yesterday.
Shangri-La, which owns and runs a 68-strong portfolio of properties across the Asia-Pacific, saw its revenue per available room rebound 20 per cent in the first half, led by growth in Hong Kong, the mainland and Singapore.
The group's executive director and chief financial officer, Madhu Rao, said revenue per available room of its flagships in Hong Kong - the Island Shangri-La hotel and the Kowloon Shangri-La hotel - had risen 53 per cent. 'Their [revenue per available room] was close to the record level in 2007,' Rao said. 'This is a good year.'
Including non-operating items, net profit grew 11.13 per cent to US$74.75 million. Net credit of non-operating profit shrank to US$3.7 million from US$54.4 million previously after a US$32.7 million gain in revaluation of investment properties was offset by losses such as those in financial assets and interest rate swap contracts in the first half.
Turnover jumped 35.46 per cent to US$722.85 million.
The interim dividend was lifted 66.66 per cent to 10 HK cents per share. Earnings per share rose 11 per cent to 20.24 HK cents. Shangri-La shares fell 2 HK cents, or 0.11 per cent, to HK$16.74 yesterday before the results announcement.
