Shangri-La Asia, the region’s biggest luxury-hotel operator, may book fewer rooms this year as rising airfares and a slumping world economy hurt tourism.
In an earnings report the hotel group said, ‘It is generally considered unlikely that hotels will experience the high levels of occupancies witnessed in 2007.’
Shangri-La’s net income fell 15% to $135.7 million in the first half, its first profit decline in four years. And the company says the Hong Kong-listed hotel operator will be ‘lucky’ to meet its 8% full-year growth target for revenue per available room, an industry gauge known as revpar.
UBS AG analysts CJ Lee and Eric Wong said , ‘While Beijing hotels saw uplift in occupancies during the Olympics in August, Shangri-La expects occupancies for the overall portfolio to remain lackluster till global economic sentiment turns more positive.’