Shangri-La Asia’s real estate operations in Colombo—including seafront luxury apartments as well as commercial and office spaces—generated strong profits for the group in 2025, more than doubling income compared to the previous year.
The group’s investment properties, which include the One Galle Face shopping mall and One Galle Face Tower, recorded a full-year profit of US$14.2 million (approximately Rs 4.4 billion) for the year ended 31 December 2025, compared to US$5.2 million in 2024. This represents an increase of more than 173%. Revenue rose to US$28.4 million (about Rs 8.9 billion), up from US$24.5 million in 2024, the group announced in Hong Kong, where it operates two of its flagship hotels.
What originally began as a hotel development on a prime site once occupied by the Sri Lanka Army has rapidly evolved into high-value investment properties, which are now more profitable than the original hospitality asset.
In contrast, Shangri-La Asia’s hotel operations generated a profit of US$8 million (approximately Rs 2.5 billion) on revenue of US$41 million in 2025, compared with US$40.5 million in 2024, from its luxury hotels in Colombo and southern Sri Lanka.
In the preceding year, the hotels reported a loss of US$2 million on revenue of US$40.5 million, while in 2023 the loss stood at US$1.9 million.
The group noted that its office and commercial rental spaces in Sri Lanka are larger in gross floor area than those in Malaysia and Singapore. It also stated that commercial occupancy in Sri Lanka continued to rise, while rental rates remained stable.
Luxury apartment sales also performed strongly. The Residences at One Galle Face offer units ranging from more than 1,700 square feet to 3,400 square feet. A penthouse unit was previously listed by an agency for over Rs 1.5 billion.
The profitability of Sri Lanka’s hotels contributed to a 28% increase in the group’s hotel business income, reaching US$90 million in 2025, compared with US$70 million the previous year.
Earlier in the year, Shangri-La Colombo appointed Andreas Streiber, a long-serving Shangri-La veteran, as General Manager.
Group-wide, Shangri-La Asia’s investment property business profit declined slightly to US$196.9 million from US$199.9 million, though this was offset by strong performance in Sri Lanka and Mongolia. Revenue increased to US$139.4 million from US$125.8 million in 2024.
Luxury apartment sales in Sri Lanka significantly boosted the real estate division’s profit, which rose to US$15.1 million compared to just US$400,000 in 2024. The company did not disclose the number of units sold in Sri Lanka during 2025.
Investment property assets in Sri Lanka are valued at US$206.8 million, exceeding the value of its hotel assets in the country.
Occupancy at Shangri-La Asia’s Sri Lankan hotels improved slightly to 46% from 39% in 2024, although the average room rate declined to US$143 from US$162. However, the weighted average revenue per available room increased marginally to US$65, up by US$1 from the previous year.
The group’s real estate business revenue surged by more than 304% to US$9.3 million in 2025, compared to US$2.3 million in 2024. This growth was mainly driven by property sales in Colombo, Sri Lanka, and Dalian, China.
Losses in mainland China hotels widened to US$14.3 million, while operations in Japan and Thailand also recorded losses in 2025. In contrast, profit from Hong Kong operations rose to US$32 million, supported by its two hotels—Island Shangri-La, located near the Legislative Council building, and Kowloon Shangri-La in East Tsim Sha Tsui.
Bermuda-incorporated Shangri-La Asia reported attributable profit falling by more than 30% to US$112.3 million for 2025. Consolidated revenue edged up slightly to US$2.2 billion, with room revenue at US$1.1 billion and food and beverage sales reaching US$766.7 million.
