Shangri-La Asia (69) H1 2025 earnings summary

Executive summary

• Consolidated revenue for 1H25 rose 0.7% year-over-year to US$1.06B, driven by resilient investment property performance despite softer hotel revenue.

• Profit attributable to owners before non-operating items was US$50.9M, down 13.9% year-over-year; after non-operating items, profit was US$57.9M, down 38.7%.

• Interim dividend declared at HK$0.05 per share, unchanged from last year.

• Launch of new brand 'Shangri-La Signatures' and continued expansion in key markets, including the opening of The Silk Lakehouse in Hangzhou.

Financial highlights

• Group RevPAR increased 1.6% year-over-year to US$105.4; weighted average hotel occupancy rose to 62.2%.

• EBITDA was US$252M, flat year-over-year; EBITDA margin slightly declined by 0.3 percentage points to 23.8%.

• Effective share of revenue decreased 0.8% to US$1,262.5M; effective share of EBITDA fell 3.1% to US$369.5M.

• Earnings per share dropped 38.7% to 1.63 US cents.

• Gross margin improved slightly to 55.9%.

Outlook and guidance

• Operational efficiency initiatives, innovation, and new brand tiers are expected to drive growth.

• Mainland China faces near-term challenges but is expected to benefit from government stimulus and inbound travel recovery.

• Hong Kong continues its recovery, supported by leisure tourism and business travel.

• New hotel openings planned in Kunming and Hongqiao in 2H 2025.

• Singapore market is normalizing after a strong 2024, with increased competition and moderating tourist arrivals.