Shangri-La Lankan hotels record US $ 13mn drop in revenue in 2019

• Company says occupancy fell to 30% due to Easter attacks
• But cuts losses to US $ 15.3mn, from US $ 18.6mn in 2018

The two Sri Lankan hotel properties of Hong Kong Stock Exchange (HKEx)-listed Shangri-La Group recorded a US $ 13.1 million drop in revenues in 2019, compared to 2018, as the occupancy levels plunged due to the negative impact created by the Easter bombings in April 2019.

In 2019, the occupancy levels of its two hotels in the country dropped to 30 percent, from 42 percent 
in 2018.

The total revenue from Sri Lankan hotel properties for the year ended December 31, 2019, decreased by 32.6 percent YoY to US $ 27.1 million.

“The decrease was mainly due to the negative tourism impact created by the bombing incident in April,” the group revealed to its shareholders recently. 

Shangri-La Group has a 90 percent equity stake in 274-room Shangri-La Hambantota Golf Resort & Spa and 500-room Shangri-La Hotel in Colombo.

In 2019, Shangri-La, at its two hotel properties in Sri Lanka, offered rooms at a discounted rate of US $ 147 per room on average, compared to US $ 161 per room in 2018.

In the year, revenue per available room (RevPAR) also decreased by 35 percent YoY to US $ 44. 

However, Shangri-La Group contained losses from the hotel properties in Sri Lanka from US $ 18.6 million in 2018 to US $ 15.3 million.

Meanwhile, Shangri-La Group recorded US $ 2 million revenue from its investment properties in Sri Lanka at end-2019, with the opening of its One Galle Face office and shopping mall in November 2019.   

Further, the group stated that it sold 76 percent of its 390 apartments at One Galle Face.

“One Galle Face, Colombo comprises 390 apartments (372 for sale and 18 for rental purpose) with total gross floor area of approximately 93,500 square metres. At December 31, 2019, an accumulated total of 283 apartments (76 percent of total) have been sold, of which 238 apartments (84 percent of sold) have been handed over to the buyers and recognised as revenue,” it stated. 

At end-2019, Shangri-La’s hotel assets in Sri Lanka were valued at US $ 241.3 million, down from US $ 261 million in 2018 and its investment properties were valued at US $ 287.9 million.