Shangri-La Asia Limited (HKEX stock code: 00069) today reported its financial results of the Company and its subsidiaries (“Group”), and associates for the year ended 31 December 2021. Highlights included:

  • Total negative cash flow reduced to -USD51.2 million from -USD301.7 million a year ago.
  • Maintained strong financial position with cash and cash equivalent of USD784.9 million and committed undrawn facilities of USD1.9 billion.
  • The consolidated revenues of the Group increased by 20.1% to USD1,241.0 million.
  • Aggregate effective share of EBITDA to the Group increased by 130.2% to USD418.0 million.
  • No final dividend proposed.

The 2021 results saw significant business improvement for the Group as Covid-19 restrictions eased, vaccination rates increased, and business recovery continued across the globe. Despite continued uncertainties, the Group improved its hotel performance in key markets and employed effective cost management strategies to improve profitability. The Group’s recovery was led by Mainland China, though this was uneven due to sporadic local outbreaks. In Hong Kong, performance improvement was supported by domestic demand and quarantine business, while Europe and some ASEAN hotels saw improvement in the second half of the year as social and travel restrictions began to loosen. Although the pandemic may still affect business in the short term, the Group is optimistic about the prospects for luxury hospitality in its key markets and has hotels opening in several new destinations in 2022.

Commenting on the annual results, Shangri-La Group’s Chief Executive Officer, Lim Beng Chee, said, “The Group’s 2021 saw a significant improvement, driven by a recovery of our hotel operations business in key markets. We also saw steady recurring income from the Group’s investment properties, resulting in a positive operating cashflow in the second half of 2021 for the first time since the pandemic began. The road to recovery has not been easy, with sporadic Covid-19 causing continued disruptions to international travel and affecting hotel operations in many of our key markets. We have had to adopt some flexibility to navigate these uncertainties and the different government guidelines in various markets. But, we are seeing travel rebound across much of the world and are cautiously optimistic. While remaining vigilant, we are readying ourselves for a post-pandemic future and preparing to seize opportunities for business development as they arise.”

Shangri-La Group’s Chairman Hui Kuok said, “During the prolonged pandemic, I am deeply heartened by our colleagues’ continued resilience and steadfast commitment to delivering hospitality to our customers, while also devoting their time and efforts to caring for the underprivileged in our local communities and for our environment. In these uncertain times with new Covid variants emerging constantly, we have undertaken major initiatives to encourage our communities to get vaccinated. This not only helps to protect them but also supports our business continuity. As of December 2021, 96% of our colleagues across the world had received at least two doses of Covid-19 vaccine.”

“Like many other businesses, particularly in the travel and hospitality industry, we continue to face challenges and uncertainties. Our management team is closely monitoring the situation and I have every confidence that we will continue elevating our standards and adopting measures to drive business under different operating environments. I would also like to thank all our guests, business partners, and shareholders for their unending support and trust throughout the year,” she added.

As it celebrated its 50th anniversary in 2021, the Group introduced several important initiatives to shape future business and empower its properties to capture new opportunities by keeping pace with customers and their ever-changing expectations. With this forward-looking approach, the Group announced the transformation of its award-winning Golden Circle loyalty programme into Shangri-La Circle, an aspirational travel and lifestyle platform set to premiere in April 2022.

The Group also continued to proceed with development plans, debuting Shangri-La, Qiantan, Shanghai and Shangri-La Shougang Park, Beijing in 2021. Two further hotels followed in the first quarter of 2022 in the Group’s new destinations: Jeddah, Saudi Arabia and Nanning, China.

The financial position of the Group continues to be strong. As at 31 December 2021, the Group had cash and cash equivalent of USD784.9 million and committed undrawn facilities of USD1.9 billion (of which USD930 million is reserved to be drawn down to replace existing facilities from the same banks). As at 1 March 2022, the Group has already completed refinancing arrangement for 80% of its 2022 refinancing needs and will continue to sustain cash conservation efforts in order to ensure the Group can endure a prolonged period of uncertainty. The Board has proposed no dividend to conserve accessible cash reserves in case of such uncertainties.

For more details, please refer to the annual results announcement: https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0324/2022032400914.pdf.

About Shangri-La Group

Shangri-La Group is one of the world's premier developers, owners and managers of hotel and investment properties which comprises office buildings, commercial real estate and serviced apartments/residences. The Group's other principal activities include hotel management services as well as property development for sale. It currently owns and/or manages over 100 hotels globally in 78 destinations under the Shangri-La, Kerry, JEN and Traders brands. Prominently positioned in Asia, the Group has a substantial pipeline of upcoming hotel and mixed-use development projects in Australia, the Chinese mainland, Cambodia, and Japan. For more information, please visit https://www.shangri-la.com/group/.

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