Shangri-La Group releases 2020 results

HONG KONG, 30 March 2021: Shangri-La Asia Limited reported a 57.5% drop in consolidated revenue to USD1,033.4 million in its summary of its financial results ended 31 December 2021.

• The consolidated revenues of the Group decreased by 57.5% to USD1,033.4 million.
• Aggregate effective share of EBITDA to the Group decreased by 79.0% to USD181.6 million; effective share of EBITDA from Investment Properties segment decreased by only 6.0% from USD259.4 million to USD243.9 million.
• The weighted average occupancy of the hotels was 33% for the year ended 31 December 2020, a decrease of 35 percentage points compared to 68% for the year ended 31 December 2019.
• RevPAR was USD40 for the year ended 31 December 2020, a decrease of 64%, compared to USD110 for the year ended 31 December 2019.

The hotel group noted that the “overall global operating environment was very difficult during the year in the review due to the Covid-19 pandemic. With International travel halted and limited domestic travel, hotel business was severely impacted.”

But it identified what it called “encouraging signs in Mainland China for both hotels and investment properties.”

 Hotels in the region hit ground zero in early February 2020 but have since seen a gradual recovery that has continued throughout the year. This recovery was helped by a strong rise in demand for domestic leisure travel, coupled with local business demand for corporate events such as exhibitions.

 Commenting on the year’s results, Shangri-La Group’s chief executive officer, Lim Beng Chee said: “The year 2020 presented unprecedented challenges for our industry. We have implemented the ‘Shangri-La Cares’ commitment globally to ensure the safety and wellbeing of our guests and colleagues. We have received very positive feedback from our guests through the TrustYou platform and high rankings on positive sentiments in the “Public Health” category. We will continue to do our utmost to maintain the highest standards of health and safety. At the same time, we have rolled out cost management measures to mitigate the financial impact of COVID- 19. These measures delivered benefits over the second half of the year and helped to limit the impact of the pandemic and are expected to carry through to 2021.”