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Shangri-La doubles profit from mall and apartments to US$14.2m in 2025
View(s):By Kapila Bandara
Shangri-La Asia’s real estate in Colombo including seafront luxury apartments, and commercial and office spaces have generated strong profit for the group in 2025, more than double the income from the year before.
The group’s investment properties including One Galle Face shopping mall and One Galle Face Tower, posted US$14.2 million (about Rs 4.4 billion) full year profit for the year ended 31 December 2025, versus US$5.2m in 2024. This was an increase of more than 173%. Revenue increased to US$28.4m (about Rs 8.9bn) from US$24.5m in 2024, the group announced in Hong Kong, where iit has two of its finest hotels.
What began as a hotel on a prime site once occupied by the Sri Lanka Army, grew rapidly into high value investment properties that are now more profitable than a trophy hospitality asset.
In contrast to its real estate, Shangri-La Asia reaped US$8m (about Rs 2.5bn) profit on revenue of US$41 million for 2025 (US$40.5m in 2024) from its luxury hotels in Colombo and in the south of Sri Lanka.
In the year before, the hotels reported a loss of US$2m on revenue of US$40.5m. In 2023 the loss was US$1.9m.
The group’s office spaces and commercial spaces for rent in Sri Lanka are larger than that of Malaysia and Singapore in gross floor area.
Commercial space occupancy in Sri Lanka continued to increase and rent was stable, Shangri-La Asia said.
Luxury apartment sales were also strong. The Residences at One Galle Face offer units of more than 1,700 square feet to 3,400 sq ft plus apartments. A penthouse was once listed by an agency for more than Rs 1.5b.
Profitability of Sri Lanka’s hotels also contributed to a 28% increase in the group’s hotel business income of US$90m for 2025, versus US$70m the year before.
Shangri-La Asia’s group-wide investment properties business profit dropped to US$196.9m from US$199.9m, but this was offset by strong performance in Sri Lanka and Mongolia. Revenue climbed to US$139.4m from US$125.8m in 2024. Luxury apartment sales in Sri Lanka helped propel profit of the real estate business to US$15.1m versus US$400,000 for 2024. The company did not disclose the number of units sold in Sri Lanka in 2025.
Investment property assets in Sri Lanka are valued at US$206.8m, greater than that of the hotel assets.
Occupancy of Shangri-La Asia’s Sri Lanka hotels improved slightly to 46% (39% in 2024) and room rate was lower at US$143 (US$162 in 2024). The weighted average revenue per available room was US$65, higher by US$1 from year before.
Shangri-La Asia’s real estate business revenue soared by more than 304% to US$9.3m, an increase of 304.3%, compared with US$2.3m for 2024. The revenue bounce was mainly attributed to property sales in Colombo, Sri Lanka, and Dalian, in China.
The loss in Chinese mainland hotels worsened to US$14.3m, while Japan and Thailand made losses for 2025. Profit in Hong Kong from its two hotels — Island Shangri-La, not far from the Legislative Council building, and Kowloon Shangri-La in east Tsim Sha Tsui — climbed to US$32m.
Bermuda-incorporated Shangri-La Asia attributable profit dropped by more than 30% to US$112.3m for 2025. Consolidated revenue edged up slightly to US$2.2bn, of which room revenue was US$1.1bn and food and beverage sales were US$766.7m.
Earlier in 2026, Shangri-La Colombo appointed Andreas Schreiber as General Manager of the hotel. This follows the appointment of Sachin Dhanawade in early 2025 as General Manager – Shangri-La Investment Properties, where he oversees the group's integrated real estate portfolio.
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