Shangri-La Asia (69) H2 2025 earnings summary

Executive summary

• Consolidated revenue rose 2.2% year-over-year to US$2.23B, with EBITDA up 3.4% to US$520.9M, driven by stable hotel operations and investment property growth.

• Group occupancy increased to 64.7%, with RevPAR reaching US$111, both up 3% year-over-year.

• Free cash flow hit a record US$313M, up US$40M year-over-year, supported by disciplined CAPEX.

• Net debt reduced by US$95M, marking the third consecutive year of deleveraging post-COVID.

• New ultra-luxury and airport hotel openings in Hangzhou and Shanghai expanded the brand portfolio.

Financial highlights

• Operating PATMI reached US$122.8M, up 6% year-over-year, while total profit fell 30.4% to US$112.3M due to lower non-operating gains.

• EBITDA margin improved to 23.3%, up 0.2 percentage points year-over-year.

• Dividend declared at HK$0.10 per share; total annual dividend unchanged at HK$0.15 per share.

• Interest coverage ratio improved to 2.4x, and cash & cash equivalents increased by US$599M year-over-year.

• Net assets attributable to owners increased 2.7% to US$5,324.4M; NAV per share US$1.50.

Outlook and guidance

• Strategy focuses on balanced geographic expansion via asset-light model and new brand tiers.

• Mainland China faces near-term pressure but shows early signs of stabilization; Hong Kong and Singapore expected to see continued recovery and steady growth into 2026.

• Southeast Asia remains a key growth driver, while Europe and Middle East face potential disruption from geopolitical tensions and energy price volatility.

• 2026 performance to date is encouraging, with positive topline and bottom-line trends.

• Structural growth in Asian travel and hospitality expected to support medium-term growth.