Shangri-La Hotels 3Q2010 net profit almost doubles

KUALA LUMPUR: Shangri-La Hotels (Malaysia) Bhd net profit for its third quarter (3Q2010) nearly doubled to RM23.5 million, compared with RM12.6 million recorded in the same period a year earlier. The company's 3Q revenue saw a smaller increase of 20.3% to RM111.95 million from RM93.06 million in the same period last year.

In its filing to Bursa Malaysia on Tuesday, Nov 9, the group's profit before tax (PBT) for the nine months of 2010 rose by 86% to RM71.6 million compared with RM38.5 million last year.

“It was largely boosted by substantially higher revenue and profit contributions from Shangri-La Hotel Kuala Lumpur and Golden Sands Resort in Penang, after completion of extensive renovations to their guestrooms and facilities in late 2009,” the company said.

Basic earnings per share for the quarter rose to 5.34 sen compared with 2.87 sen a year ago.

The group expects its hotels and resorts to continue to fare well during the remaining months of 2010 as they are in a good position to benefit from the expected continuing recovery in demand from both the business and leisure travel markets.

It also expects its financial results for the whole of 2010 to improve significantly, and expects better operating performances of Shangri-La Hotel Kuala Lumpur and Golden Sands Resort following the completion of their respective renovation works.