Hotel Shilla Q3 Operating Profit Down 71% YoY Due to Weak Duty-Free Sector (Comprehensive)

Q3 Operating Profit of 7.741 Billion KRW
Sales of 1.0117 Trillion KRW in the Same Period
Poor Duty-Free Performance and Hotel & Leisure Below Expectations

Hotel Shilla received a disappointing performance report for the third quarter. Due to increases in exchange rates and construction costs, the TR (duty-free) division's results were poor, and the hotel and leisure division saw either similar or slightly increased figures compared to last year.

Hotel Shilla announced on the 27th that its consolidated operating profit for the third quarter of this year was preliminarily estimated at 7.741 billion KRW, a 71% decrease compared to the same period last year. During the same period, sales amounted to 1.0117 trillion KRW, down 25.7% year-on-year. Net loss turned to 3.291 billion KRW.

Seoul Shilla Hotel
[Photo by Hotel Shilla]

Looking at each business division, the duty-free division recorded an operating loss of 16.3 billion KRW, turning to a deficit. Sales were 845.1 billion KRW, down 29% compared to the same period last year. The hotel and leisure division recorded operating profit and sales of 24 billion KRW and 166.7 billion KRW, respectively. Operating profit decreased by 8% year-on-year, but sales increased by 2%.

A Hotel Shilla official said, "In the third quarter, the significant operating loss in the duty-free division affected the overall performance," adding, "The group tours from China, which were allowed in August, have not yet fully materialized, and factors such as increased exchange rates and construction costs contributed to this."