HONG KONG 1 September 2020) Shangri-La Asia Limited, listed on the Hong Kong Stock Exchange, reports that consolidated revenues decreased by 62.1% to USD453.5 million, compared to USD1,195.0 million for the same period last year.
Highlighting the financial performance for six months ended 30 June 2020, the group reported the weighted average hotel occupancy decreased 40 percentage points to 26%, compared to 66% year-on-year.
RevPAR decreased by 68% to USD35, compared to USD110. Effective share of EBITDA for the group decreased by 93.8% to USD27.8 million, compared to USD449.2 million.
Operating PATMI (Profit After Tax and Minority Interests) decreased to record a loss of USD255.4 million, compared to a profit of USD64.2 million. Total PATMI decreased to a loss of USD282.6 million, compared to a profit of USD115.1 million.
The report concluded that no interim dividend was declared as a “prudent effort to conserve cash.”
Commenting on the interim results, Shangri-La Group’s chief executive officer, Lim Beng Chee said: “Our hotels’ occupancy rates in mainland China have seen a sustained and gradual recovery since February, supported by domestic leisure, corporate travel, and some government businesses. We have also recently started seeing business picking up in other regions, such as Australia and Malaysia, where the pandemic is showing signs of being under control, and there is strong domestic demand for our services.
“In mainland China where half of our hotels are located, there has been a strong pick up in local leisure and corporate travel. This has helped the region reach 49% occupancy in the month of July 2020.”
Looking ahead, Shangri-La Group’s chairman Hui Kuok added: “The impact of Covid-19 on the global economy continues to play out, and governments worldwide are still adapting as the situation evolves. The travel and hospitality industry face continued challenges and various governments have rolled out policies and measures to provide support to our sector.”
While noting there were gradual business recoveries in destinations where the virus was showing signs of being under control, the group has implemented multiple cost control initiatives to manage its operational costs. They include voluntary cost-cutting measures, including unpaid leave and wage reduction. It has also restructured and streamlined some teams.
As of 30 June 2020, the group had cash and cash equivalent of USD951.9 million and committed undrawn facilities of USD1.2 billion, with USD141.0 million of debt to be refinanced for the rest of the year.
The Board declared no interim dividend and drastically cut back on capital expansion plans to conserve accessible cash reserves in the event of a prolonged period of uncertainties.
