Shangri-La Asia to add nine new hotels

PUBLISHED : Friday, 22 March, 2013, 12:00am
UPDATED : Friday, 22 March, 2013, 4:44am

Luxury hotelier Shangri-La Asia plans to add nine new hotels, including one in Hung Hom, it said yesterday after posting a 42 per cent year-on-year increase in net profits.

Net profits for the year to December 2012, including a US$185 million revaluation gain on investment properties, rose to US$358.9 million.

Total sales revenues were up 8 per cent to US$2.05 billion, and the board declared a final dividend of 10 HK cents.

For the Hung Hom project, Shangri-La said it planned to build a development, including a Shangri-La hotel and retail facilities on the waterfront site.

"Approvals for the development plans have been sought from the relevant government authorities," the company said in its results announcement.

In 2011, Shangri-La Hotel (Kowloon), a wholly owned subsidiary of Shangri-La Asia, won a waterfront site in Hung Hom for HK$2.33 billon.

Apart from the Hung Hom project, the company also announced six projects on the mainland, one in Accra, the capital of Ghana, and one in Rome.

Shangri-La Asia's chief financial officer, Madhu Rao, said the land had been acquired for these projects. "[However], we cannot have an accurate [total investment] cost [for all these hotels] until the plans are finalised. Those projects are in the design stage," he said.

Currently, Shangri-La Asia said, it had 27 projects under development and due to open for business from the middle of this year to 2016. Of these, 17 hotels are on the mainland and another 10 in countries such as Turkey and Sri Lanka.

It said the weighted average room yields for the group's owned hotels saw a 6 per cent increase last year over 2011. The stock rose 2.53 per cent to HK$17 yesterday before the results announcement.

Shangri-La is part of the Kerry Group, the controlling shareholder of SCMP Group, publisher of the South China Morning Post.