Friday May 16, 2008
Penang, KL hotels boost Shangri-La profit for FY07
KUALA LUMPUR: Shangri-La Hotels (M) Bhd has attributed its sterling performance for the financial year ended Dec 31, 2007 (FY07) to revenue generated mainly by its Rasa Sayang Resort and Spa in Penang and Shangri-La Hotel Kuala Lumpur.
For FY07, the group saw its pre-tax profit surge 118% to RM98.4mil and revenue rise 24% to RM410.7mil, from RM45.4mil and RM330.5mil respectively in FY06.
For the first quarter ended March 31, it reported 62% jump in net profit to RM25.56mil from RM15.71mil a year ago while revenue grew 16% to RM112.83mil against RM97.47mil previously.
Managing director Kay Kuok said while Shangri-La Hotel Kuala Lumpur contributed over 50% of revenue last year, the newly-refurbished five-star Rasa Sayang Resort and Spa and had also boosted sales significantly.
“We closed the hotel in Penang for over a year for major renovations to make it a high-end resort and spa and our efforts have been rewarded by higher occupancy and better room rates,” Kuok said after the company AGM yesterday.
She said Shangri-La Hotel Kuala Lumpur, which has an average occupancy of 65% to 70%, was now undergoing major refurbishment to enhance the hotel’s image.
“We plan to invest RM108mil to renovate about half of the 710 rooms,” Kuok said, adding that renovation work started last month and would stretch to February.
On the impact of the renovations to its bottom line, she said: “It will definitely affect FY08 revenue as the hotel is a major sales contributor. But our shareholders understand that they are necessary to improve business over the longer term.”
Kuok said renovations to other hotels in the group’s stable would also be done in stages.
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