Shangri-La Hotels' 3Q net profit surges 158% on-year on improved leisure demand

• Revenue increased by 49.87% to RM365.26 million in 9MFY2023 from RM243.72 million in 9MFY2022, supported by higher hotel occupancy rate.

KUALA LUMPUR (Nov 21): Hospitality group Shangri-La Hotels (Malaysia) Bhd's net profit surged 157.7% to RM15.62 million in the third quarter ended Sept 30, 2023 (3QFY2023) from RM6.06 million a year earlier, on improved level of leisure demand and hotel occupancy rate.

As a result, earnings per share for 3QFY2023 came in higher at 3.55 sen compared with 1.38 sen for 3QFY2022, its Bursa Malaysia filing showed on Tuesday.

Quarterly revenue rose 31.8% to RM141.4 million from RM107.29 million a year earlier.

On a quarterly basis, the group’s net profit came in higher from RM2.63 million in 2QFY2023, while revenue grew by 31.5% from RM107.55 million in 2QFY2023.

For the nine-month period ended Sept 30 (9MFY2023), the hotel operator returned to the black, registering a net profit of RM26.2 million compared with a net loss of RM8.9 million, on the back of recovery of its rooms and food and beverage operations.

Revenue increased by 49.87% to RM365.26 million in 9MFY2023 from RM243.72 million in 9MFY2022, supported by higher hotel occupancy rate.

Looking ahead, Shangri-La Hotels said the overall business momentum across the group’s hotel operations remains favourable, despite the challenging and uncertain economic environment.

“The group’s hotel and resorts should continue to perform well for the remainder of the year, in line with the continuing healthy rebound in travel demand in the majority of their key leisure and business travel market.

“The outlook for the group’s investment properties in Klang Valley continues to be challenging with persisting sluggish levels of demand in a weak market,” it added.

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