News
Shangri-La commercial space profit exceeds Rs 2b, hotels post Rs 576m income
Shangri-La Asia’s hotels in Colombo and Hambantota have delivered profit of US$1.9 million (about Rs 576.5 million) in the first half of this year and income from the One Galle Face complex of commercial and office space, soared to US$7.1m (about Rs 2.15 billion).
But Shangri-La Asia group profit for the six months ended 30 June dropped.
Sri Lanka hotels profit increased from US$300,000 in the first half of 2024, the Hong Kong-based luxury hotels-to-real estate company, has reported in its interim financial filings.
Profit from investment properties such as the seven-storey retail and dining venue connected to ‘The Residences’ in Sri Lanka soared by 688.9% to US$7.1m from US$900,000 in the year before. Revenue grew by double digits. This was the highest profit growth compared with investment properties in China, Singapore, Malaysia, and Mongolia.
Investment properties are real estate held for long-term rental income, for capital appreciation, or both.
Commercial and office space in Sri Lanka generated higher rents. Occupancy of commercial space was stable and office occupancy increased.
In contrast to the US$7.1m half-year profit, Sri Lanka investment properties generated US$5.2m profit for the whole year 2024, Shangri-La Asia had reported in annual filings earlier.
Shangri-La Asia sold more apartments in Sri Lanka. This was mainly responsible for higher revenue from property developed for sale by subsidiaries rising to US$5.6m for the six months from US$200,000.
Consolidated revenue of the Sri Lanka hotels dropped by 3.9% to US$19.5m in the first half from US$20.3m from the year before.
Consolidated revenue from all Shangri-La hotels, including in Hong Kong, Australia, and France was US$929.2m.
Improved profit from hotels in Sri Lanka helped to lift the group’s hotels profit by US$5.8m in the first half to US$37.4m, versus US$31.6m the year before.
But this was partially offset by greater losses from China and reduced profits from Singapore, the company reported.
Sri Lanka was also the main contributor to revenue from property developed for sale increasing to US$5.6m from US$200,000 the year before.
Investment property revenue in Sri Lanka grew by 16% to US$13.8m versus US$11.9m from the year before. Shangri-La Asia said this was a significant revenue improvement.
Shangri-La Asia’s consolidated revenue from investment properties was US$68 million, higher by 13.9%, from US$59.7m in 2024. Profit in the segment climbed to US$104.3m.
Shangri-La Asia reported a US$1.3m loss from property development for sale and other business.
A key performance indicator, the weighted average occupancy of Sri Lanka hotels was 44%. The average room rate was US$147, (about Rs 44,525), lower than US$160 last year. The weighted average revenue per available room (RevPAR) was US$65 versus US$68 last year.
In Sri Lanka, the company reported cash and bank balances of US$48.2m.
Shangri-La Asia first half profit fell by 38.7% to US$57.9m from US$94.5m for the same period in 2024. Revenue came in at US$1.05b, up slightly from US$1.04b from 2024. Hotels accounted for US$929.2m revenue. Revenue from rooms was US$516.9m.
Well known among travellers especially in Southeast Asia for its service and luxury properties, Shangri-La owns 82 hotels, and is involved in hotel management, investment properties such as commercial and office space, apartments, and real estate, largely in Asia.
This May, the company unveiled a high end luxury brand Shangri-La Signatures, by transforming the east wing of Shangri-La Hangzhou in China into ‘The Silk Lakehouse’.
The group’s net borrowings increased by US$92.6m to US$4.513b.
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