Shangri-La Asia (69) H2 2024 earnings summary

Executive summary

• FY24 consolidated revenue grew 2% year-over-year to US$2.19B, driven by stable hotel operations and strong investment property performance.

• Free cash flow reached a record high of US$273M, supporting financial flexibility and strategic initiatives.

• EBITDA margin declined 1.3pp YoY to 23.1%, and EBITDA fell 4% YoY to US$504M.

• Operating PATMI decreased 10% YoY to US$116M; profit attributable to owners fell 12.3% to US$161.4M, mainly due to lower EBITDA and reduced non-operating gains.

• Full-year dividend maintained at HK15 cents per share.

Financial highlights

• Group RevPAR was US$107.8, down 0.2% YoY; weighted average hotel occupancy at 63% (up 1 ppt).

• Effective share of revenue was US$2.65B, down 4.2% YoY, mainly from a 73.9% drop in Property Development for Sale revenue.

• Effective EBITDA (ex-Resi) was US$748M, down 3.5% YoY; effective share of EBITDA declined 13.0% to US$760.1M.

• Highest free cash flow yield in at least 15 years at 14.1% of average market cap.

• Earnings per share fell 12.2% to 4.54 US cents.

Outlook and guidance

• Cautiously optimistic on China’s domestic travel demand in 2H2025, supported by government stimulus and high household savings.

• Plans to expand corporate client base, especially among rising tech companies.

• Continued expansion through managed contracts and dual-brand strategies, with new openings in Shenzhen, Phnom Penh, and Kunming.

• Rejuvenation and new concepts at flagship properties to drive guest experience and returns.

• Continued focus on cash flow generation, deleveraging, and selective long-term investments.