Shares in hotel giant Shangri-La Asia plunged 9.64 per cent yesterday on growing fears the outbreak of atypical pneumonia is hurting regional tourism.
The stock fell 55 HK cents to $5.15 despite Friday's announcement full-year net profits had surged 58 per cent to US$93.07 million.
'Investors are worried about the decline in room bookings for Shangri-La's hotels due to the recent pneumonia outbreak,' said Kenny Tang Sing-hing, associate director at Tung Tai Securities.
He said Shangri-La had hotels in Hong Kong, the mainland and across Southeast Asia - areas affected most by the virus.
Shangri-La owns 17 hotels in China which accounted for 31.13 per cent of group turnover of US$600 million last year. Its two Hong Kong hotels contributed 23.61 per cent of revenue.
Hongkong and Shanghai Hotels - owner of The Peninsula, the Kowloon Hotel and the Repulse Bay Complex - yesterday fell 2.08 per cent to $3.525. Harbour Centre Development, which runs The Marco Polo Hongkong Hotel, dropped 2.72 per cent to $5.35.
