(TAN): Shangri-La Asia Group has reported consolidated revenues of USD 453.5 million for H1 2020, down 62.1% from USD 1,195 million during the same period last year.
COVID-19 significantly impacted the group’s business. The weighted average occupancy of the hotels decreased 40 percentage points to 26%, compared to 66% for same period last year.
RevPAR decreased by 68% to USD 35, compared to USD 110 for the same period last year.
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Effective share of EBITDA of the group decreased by 93.8% to USD 27.8 million, compared to USD 449.2 million for the same period last year.
Operating PATMI of the group decreased to a loss of USD 255.4 million, compared to a profit of USD 64.2 million for the same period last year. Total PATMI of the group decreased to a loss of USD282.6 million, down from a profit of USD 115.1 million in H1 2019.
No interim dividend has been declared in order to conserve cash.
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Shangri-La Group’s CEO 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. Despite the severity of COVID-19’s impact on our financial performance during the period, our overall financial position remains healthy, with adequate liquidity to prepare ourselves for a prolonged pandemic,” he said.
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Looking ahead, Shangri-La Group’s Chairman Hui Kuok said, “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…. Our management team is closely monitoring the situation and have measures to ensure the continuity of our businesses.”
“While there are gradual business recoveries in destinations where the virus is showing signs of being under control, the group is mindful that the situation can still rapidly change, as evidenced by recent second or third waves in some regions. The group’s corporate business may be further hindered by economic uncertainties, as tensions between the US and China have intensified over the past few months,” he added.
