Shangri-La Asia returns to black in FY2023 with US$184.1 million net profit

SHANGRI-LA Asia : S07 0% on Friday (Mar 22) recorded a net profit of US$184.1 million for its full year ended Dec 31, 2023, reversing from a US$158.5 million loss a year ago.

Its revenue for FY2023 rose 46.5 per cent to US$2.1 billion, from US$1.5 billion the year before.

The hospitality group said its better performance was driven by the “strong recovery” of its hotel business. The rebound was led mainly by mainland China and Hong Kong, after borders reopened in early 2023. Its hotels in the rest of the world continued to experience strong demand from travel.

Earnings per share stood at 5.17 US cents for the full year, compared with a loss per share of 4.44 US cents in FY2022.

A final dividend of 15 Hong Kong cents per share was proposed for the full year, for shareholders’ approval at the group’s upcoming annual general meeting. The dividend will be paid on Jun 14, after books closure on Jun 4.

“2023 saw the return of global travel as all markets fully reopened,” said the group. “Our bottom line returned to pre-pandemic levels, while margins surpassed pre-pandemic levels despite challenging macro conditions.”

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The leisure-driven return to travel and changing consumer landscape also affirmed the group’s strategy to “grow our offerings to serve our guests and customers in a more holistic way”.

As at Dec 31, 2023, the group had equity interest in 80 operating hotels, and three hotels under operating lease, representing a room inventory of 35,135 across the Asia-Pacific, Europe and Africa.

Shares of Shangri-La closed flat at HK$5.25 on Friday, before the announcement.