Saturday, March 20, 2010

Shangri-La sees 2009 net profit jump 54%

Luxury hotel operator Shangri-La Asia Ltd said Wednesday that its 2009 net profit jumped 54% year on year from US$165.9 million to US$255.5 million, helped by higher property prices, Dow Jones Newswires reported.

The company said earnings per share were US$0.89 and a final dividend of US$0.06 per share was declared.

Revenue dropped 9% to US$1.23 billion in 2009 from US$1.35 billion in 2008. Total revenue for room rentals fell 15% to US$570.2 million, and average revenue per available room, a key performance metric, declined 24%.

Shangri-La's core business was hit by the global financial crisis, which lessened business and leisure travel. The company does not expect to return to pre-crisis levels until 2012, it said.

Hong Kong-based Shangri-La currently manages 66 hotels under the deluxe Shangri-La and mid-market Traders brands. There are over 30,000 rooms in total. The group has over 40 projects under development in different countries including Austria, Canada and China.

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