SHANGRI-LA ASIA(HK:00069)2023-03-24 09:18Financial Performance - Shangri-La Asia Limited reported a consolidated revenue of $1,462.1 million for the year ended December 31, 2022, representing a 17.8% increase from $1,241.0 million in 2021[3]. - The group's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $174.4 million, up 31.3% from $132.8 million in the previous year[3]. - The net loss attributable to shareholders improved to $(158.5) million in 2022 from $(290.6) million in 2021, marking a 45.5% reduction in losses[3]. - The company reported a loss per share of $(4.44), which is a 45.4% improvement compared to $(8.13) in 2021[3]. - The total comprehensive income for the year ended December 31, 2022, was $1,462.1 million, an increase of 17.8% compared to $1,241.0 million in 2021[15]. - The total profit before interest, tax, depreciation, amortization, and non-operating items amounted to $441.6 million, a 5.6% increase from $418.0 million in the previous year[48]. - The actual profit before interest, tax, depreciation, amortization, and non-operating items for hotel properties was $132.1 million, an increase of 20.6% from $109.5 million for the year ended December 31, 2021[49]. - The company reported a comprehensive loss of $609,354,000 for the year ended December 31, 2022, compared to a comprehensive loss of $201,815,000 for the year ended December 31, 2021[94]. Hotel Operations - The group continues to develop hotel properties and investment properties for leasing, maintaining its focus on the hospitality sector[5]. - New hotel openings include the Shangri-La in Jeddah, Saudi Arabia, and the Shangri-La in Nanning, China, which opened in February and March 2022, respectively[6][7]. - The hotel operations segment generated a total revenue of $1,340.6 million, reflecting a 19.6% increase from $1,120.8 million in the previous year[15]. - Hotel room revenue increased by 37.7% to $622.9 million in 2022 from $452.5 million in 2021[15]. - The weighted average occupancy rate for the group's hotels was 42% for the year ended December 31, 2022, up 3 percentage points from 39% for the year ended December 31, 2021[23]. - Revenue per available room (RevPAR) increased to $64 for the year ended December 31, 2022, a 25% increase from $51 for the year ended December 31, 2021[23]. - The group operates a total of 80 hotels with 34,243 available rooms[20]. - The group reported a total of 19,354 available rooms in mainland China[20]. Investment Properties - The group has a total of 950,576 square meters of investment properties in operation, with 663,263 square meters being commercial space[8]. - The total estimated fair value of the group's hotel properties was $11,950.6 million as of December 31, 2022, with $4,914.2 million from external valuations and $7,036.4 million from internal valuations[12]. - The adjusted net asset value of the company would increase from $5,254 million to $10,795.1 million if all hotel properties were presented at fair value[12]. - The profit from investment properties was $182.0 million, a slight increase of 0.8% from $180.6 million for the previous year[58]. - Revenue from investment properties in mainland China increased by 8.6% to $27.7 million, driven by improved occupancy rates at the Wuhan Shangri-La Center[41]. Employee and Management - The group employs 40,700 staff members across its operations, emphasizing the importance of employee engagement and development for achieving its vision by 2030[79]. - Over 500 leaders participated in the group's leadership development programs in 2022, focusing on nurturing future hotel managers and operational leaders[80]. - The average voluntary turnover rate in 2022 was 22%, reflecting challenges faced by the hotel industry[83]. - The company awarded a total of 12,500,000 shares under its share incentive plan to attract, retain, and motivate key talent for long-term growth[82]. Debt and Financing - As of December 31, 2022, the group's net borrowings amounted to $4,846,400,000, an increase of $43,400,000 from $4,803,000,000 on December 31, 2021[61]. - The group's debt-to-equity ratio rose from 79.4% on December 31, 2021, to 89.3% on December 31, 2022, primarily due to the depreciation of global currencies against the US dollar[61]. - The group signed a five-year bank loan agreement for $100,000,000 during the year for refinancing and operational funding[61]. - The group recorded a net fair value gain of $89,900,000 from its investment properties for the year ended December 31, 2022[68]. - The total interest expense increased to $144.293 million in 2022 from $123.504 million in 2021, an increase of about 16.8%[127]. Market Performance - Singapore's revenue increased by 89.4% to $197.4 million for the year ended December 31, 2022, compared to $104.2 million in 2021[22]. - Malaysia's revenue surged by 197.7% to $77.1 million for the year ended December 31, 2022, compared to $25.9 million in 2021[22]. - In Singapore, the hotel occupancy rate increased by 24 percentage points to 61%, with RevPAR rising by 178% to $150[28]. - Total revenue from hotel properties in mainland China decreased by 27.0% to $429,500,000 for the year ended December 31, 2022[27]. Future Outlook - The company plans to introduce improved wellness services and family floors by the end of 2023, setting a blueprint for other properties[86]. - The company maintains a cautious optimism regarding business recovery and profitability, particularly benefiting from China's accelerated reopening[86]. - The company has seen a significant increase in demand for its hotels in mainland China during the 2023 Spring Festival, with revenue per room exceeding 2019 levels[85].