News
Shangri-La mall and apartments deliver profit, hotels stand out for revenue growth
View(s):By Kapila Bandara
Shangri-La Asia’s hotels in Colombo and Hambantota have recorded the highest rate of revenue growth in 2024 for the group in its 50th anniversary year, while investment properties such as the seven-storey shopping mall One Galle Face, and apartments have delivered profit.
Though not profitable, consolidated revenues of the Sri Lanka hotels for 2024 increased by 22% to US$40.5 million (Rs 12.102 billion) from US$33.2m in 2023, annual financial filings show. The loss was US$2m versus US$1.9m loss in 2023.
Sri Lanka investment properties booked a profit of US$5.2m (Rs 1.553 billion) versus a loss of US$1m in 2023. Shangri-La Asia reported the percentage change as “not meaningful’’.
Shangri-La Asia said group investment properties “remained a steady contributor’’. Investment properties in Sri Lanka figured well in the segment.
Consolidated revenue of group investment properties climbed to US$125.8m, an increase of 16.2%, or US$17.5m, compared with US$108.3m for 2023. The increase was mainly driven by the improved performance of investment properties in Sri Lanka and Mongolia as well as additional revenue from Shangri-La Centre, Fuzhou, China.
Revenue growth rate of the two Sri Lanka hotels was the highest among all geographies including Hong Kong (5.8% revenue increase to US$321.9m), the Chinese mainland (a drop of 6.7% to US$655.2m), Singapore, Malaysia, Philippines (16%), Japan, Thailand, France, Australia, the UK, Mongolia, and elsewhere.
Revenue growth rate from Sri Lankan investment properties including the shopping mall, apartments and office space also was the highest across geographies. Investment properties are real estate held for long-term rental income, for capital appreciation, or both.
Consolidated revenue of Sri Lanka investment properties was US$24.5m versus US$18.5m in 2023, an increase of 32.4%. It was the highest rate of growth compared with Chinese mainland (22.7%), Singapore, Malaysia, Mongolia, and other countries.
In Sri Lanka, both rent and occupancy, especially in the commercial segment, continued to increase.
Revenue from property development for sale by subsidiaries was US$2.3m, an increase of 43.8%, compared with US$1.6m in 2023, Shangri-La Asia reported.
Rent ranges from US$21 to US$25 per square metre (Rs 6,275 to Rs 7,470) per month and occupancy varies from 85% to 90%, the group reported.
Shangri-La Colombo is on freehold lease terms. The One Galle Face complex of office and commercial space, and residential rental, is also on freehold lease terms.
Shangri-La Hambantota has 274 rooms. Shangri-La Colombo offers 500 rooms.
Occupancy in Sri Lanka was 39% and the room rate has risen to US$162 (US$146 in 2023). Average revenue per room was US$64. The room rate is higher than in Malaysia at US$134. Average revenue per room in Malaysia is US$89. Sri Lanka occupancy was among the lowest at 39% although an improvement from 2023.
Shangri-La Asia has two main subsidiaries in Sri Lanka. Shangri-La Hotels Lanka (Private) Limited (90% interest), is involved in hotel ownership and operation and real estate development and operation. Shangri-La Investments Lanka (Private) Limited (90% interest) is involved in hotel ownership and operation.
Sri Lanka hotel assets are stated at US$146.6m versus US$109.6m in 2023. Investment properties assets are stated at US$191m versus US$203.4m in 2023. Properties for sale are stated at US$19.548m versus US$18.347m in 2023. This includes the cost of the land.
Shangri-La Asia continues to elevate its guest offerings and a trip to Hong Kong would not be complete without dining at its Michelin star restaurants Petrus, and Summer Palace at Island Shangri-La, and Shang Palace at Kowloon Shangri-La. To mark the 50th anniversary, the 45th floor of Island Shangri-La was transformed to attract families — 21 luxurious themed rooms and suites.
Shangri-La Asia is a part of Malaysian founder Kuok Hock Nien’s Kerry Group, which includes the sugar, oils, and grains business Wilmar International (which has business in Sri Lanka), and Kerry Properties. Kerry Group Limited has a 50.189% interest in Shangri-La Asia. Kerry Holdings Limited is also a substantial shareholder.
Shangri-La Asia, incorporated in Bermuda, is chaired by Kuok Hui Kwong, 47. Her salary is recorded as US$666,000. Total cash remuneration for 2024 was US$2.11m.
Shangri-La Asia booked an exceptional foreign exchange gain of US$11.2m arising from the appreciation of the Sri Lankan rupee, compared with an exceptional gain of US$29.9m for 2023 due to the rupee appreciation arising from the foreign currency bank borrowings by the Sri Lanka business.
Group profit for 2024 dropped by 12.3% to US$161.4m, versus US$184.1m in 2023. Revenue was US$2.185.4b, down by 4.2%. Hotels profit fell to US$70m from US$96.6m in 2023, while investment properties profit climbed to US$199.9m, from US$185.3m for 2023.
Over a year, Shangri-La Asia stock has fallen by 22.53%. On Friday, shares closed in Hong Kong at HK$4.47. The company has a market cap of HK$16.10b.
The best way to say that you found the home of your dreams is by finding it on Hitad.lk. We have listings for apartments for sale or rent in Sri Lanka, no matter what locale you're looking for! Whether you live in Colombo, Galle, Kandy, Matara, Jaffna and more - we've got them all!