Shangri-La 3Q profit rises 4% to RM22m

by **Cals** Tue 12 Nov 2013, 21:06

Business & Markets 2013

Written by Jeffrey Tan of theedgemalaysia.com

Tuesday, 12 November 2013 19:13

KUALA LUMPUR (Nov 12): Shangri-La Hotels (M) Bhd’s net profit rose 4% year-on-year to RM22 million in the third quarter ended September 30, 2013 from RM21 million a year earlier.

Revenue climbed 8% to RM133 million from RM123 million, Shangri-La said in a statement to Bursa Malaysia today.

The Robert Kuok-controlled hotel chain said cumulative nine-month net profit rose to RM63 million from RM57 million a year earlier. Revenue came to RM379 million compared to RM347 million.

Shangri-La said the first nine months of this year benefited significantly from a buoyant performance by Rasa Ria Resort. This follows the completion of the renovation of all its Garden Wing guestrooms.

This came amid "strong local market conditions" it said.

Shangri-La said most of its hotels recorded growth in profit and revenue. The list comprises Rasa Ria Resort, Rasa Sayang Resort, Golden Sands Resort and Traders Hotel Penang.

The exception is Shangri-La Hotel Kuala Lumpur which recorded a small decline in profit. This is due to reduced profit from food and beverage operations.

This is despite revenue growing 4%, helped by an improved occupancy level of 82%.

Meanwhile, the group’s share of profit from Traders Hotel Yangon, its 23.53% associate in Myanmar, increased to RM1.8 million compared to RM811,000 a year earlier.

Shangri-La said the group’s hotels and resorts are expected to see continued "encouraging demand" from the business and leisure travel markets, although economic conditions remain uncertain.