Shangri-La concerned over occupancy
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Shangri-La Asia Ltd has said that occupancy at its hotels may suffer this year as the global economic slump affects travelling habits. Bloomberg has reported that the luxury hotel operator’s net income fell 15% to US$135.7 million in the first half of 2008 - its first profit decline in four years, and Chief Financial Officer, Madhu Rao, said Shangri-La would be “lucky” to meet its 8% full-year growth target for revenue per available room (revPAR).
“It is generally considered unlikely that hotels will experience the high levels of occupancies witnessed in 2007,” Bloomberg reported the company saying in its earnings report.
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