Shangri-La Asia Limited reported a 53.7 per cent jump in net profit attributable to shareholders to US$89.0 million for the six months ended Jun 30, driven by higher contributions from its hotel portfolio and steady growth in rental income.

Earnings per share rose to 2.50 US cents from 1.63 US cents a year earlier. The board declared an unchanged interim dividend of HK 5 cents per share, payable on Oct 9 to shareholders on record as at Sep 28.

Consolidated revenue increased 6.4 per cent year-on-year (YoY) to US$1.124 billion, while effective share revenue, which includes proportional contributions from associates, climbed 4.9 per cent to US$1.324 billion. Group EBITDA expanded 15.1 per cent to US$289.5 million and, on an effective-share basis, advanced 9.6 per cent to US$404.9 million, lifting the margin 1.3 percentage points to 30.6 per cent.

Hotel properties remained the largest earnings driver, with profit after tax up 22.5 per cent to US$45.8 million, led by double-digit revenue growth in Hong Kong, Malaysia and Australia. Hotel management and related services delivered a 33.8 per cent profit increase to US$21.4 million. Investment properties provided stable earnings of US$104.9 million, broadly flat YoY, while property development and other businesses posted a narrowed loss of US$1.0 million.

On the operational front, system-wide revenue per available room (RevPAR) improved 6 per cent YoY to US$111, supported by higher average daily rates across most markets. Hong Kong RevPAR surged 12 per cent, and Australia gained 24 per cent, offsetting softer performance in the United Kingdom and parts of Europe.

Foreign-exchange gains and lower net interest expenses further boosted the bottom line. Average borrowing cost eased to 3.7 per cent from 4.0 per cent after the group refinanced higher-cost debt with lower-coupon renminbi bank loans and two Panda bond issues totaling RMB3.2 billion. Net borrowings stood at US$4.508 billion, lifting the gearing ratio to 80.0 per cent from 77.2 per cent at end-2025.

During the half-year, Shangri-La opened Shangri-La Kunming, continued the ramp-up of the Silk Lakehouse in Hangzhou and secured new third-party management agreements in Wuxi, Harbin, Zhengzhou and Bodrum. Management said the push into asset-light growth, especially through the refreshed Traders brand in China, would broaden the earnings base without heavy capital outlay. Construction progresses on pipeline projects in Zhengzhou and Kyoto, while the group reviews development plans in Rome, Bangkok and Accra.

Looking ahead, the company remains “cautiously optimistic” for the remainder of 2026, noting resilient travel demand despite geopolitical tensions in the Middle East and extreme weather in China. It will focus on brand expansion, operational efficiency and disciplined capital management to sustain earnings momentum.