Shangri-La Asia is the latest luxury hotel operator to look at the possibility of making an insurance claim for loss of revenue caused by the Sars outbreak in Hong Kong.
'Individual Shangri-La hotels in Hong Kong, Singapore and the mainland are looking into holding talks with their insurance companies [in relation to the Sars],' said a Shangri-La Asia spokesman.
Occupancy rates at two of the group's hotels in Hong Kong - Island Shangri-La and Kowloon Shangri-La - dipped to less than 10 per cent at the worst stage of the Sars outbreak. The group was also forced to scrap its final dividend of five cents for last year to cut operation costs. Shangri-La said in May Sars had led to a significant decline in occupancy, and in food and beverage spending at the group's hotels, which would adversely affect its upcoming interim results.
Last week, Hongkong & Shanghai Hotels said it had sought legal advice on a potential insurance claim to recoup business losses from Sars.
Professional Insurance Brokerage Association chairman Sammy Lui estimated claims for damage caused by Sars under business interruption policies might reach HK$300 million.