Despite a widening pre-tax loss in its latest financial year, the five-star Shangri-La Hotel at The Shard is optimistic about an improved financial performance in 2024. The hotel reported a pre-tax loss of £7.3m for 2023, according to accounts recently filed with Companies House, compared to a £6m pre-tax loss in 2022.
However, the hotel's turnover increased from £45.8m to £49.2m during the same period. Occupying 18 floors from level 34 upwards, the hotel features 202 rooms and suites, three dining venues, and ³¢´Ç²Ô»å´Ç²Ô’s highest hotel infinity pool, as reported by .
Occupancy rates rose from 62% to 66%, while the average daily rate slightly decreased from £641 to £638. Revenue per room grew from £396 to £421, and food and beverage turnover increased from £15.9m to £17.4m.
The hotel attributed its widening loss to inflationary pressure in the labour market, resulting in higher labour costs of £2m compared to 2022, along with impacts from utilities of £600,000 and maintenance and repairs of £700,000. The hotel noted that payroll continues to be its most significant operating cost, as it was in 2022.
"With inflation in [the] º£½ÇÊÓƵ now coming back to manageable levels the hotel will be assisted with operating and payroll expenses due to market conditions and further by negotiating, tendering deals with suppliers and running regular payroll productivity meetings."
On its future, the Shangri-La Hotel stated: "The company continues to operate the hotel under the operating lease and enters its 11th year of operation in 2024."
"Despite the decline in economic performance for 2020, 2021 and 2022 brought about by the pandemic, the company has improved on its 2019 trading levels in 2023 and expects to continue growth in 2024."
The results follow the company behind The Shard's viewing gallery remaining in the red for a fourth consecutive year despite its revenue continuing to rise. The attraction reported a pre-tax loss of £678,839 for 2023, according to accounts filed with Companies House.
This total came after the firm also posted a pre-tax loss of £622,359 for 2022. The Shard's attraction has not made a pre-tax profit since it reported a total of £2.3m in 2019.
Shard Viewing Gallery Management Limited attributed its increased loss to the attraction being closed for ten weeks from 16 June, 2023, for essential maintenance works. It also cited rising inflation, the cost-of-living crisis and other macroeconomic and geopolitical factors which negatively impacted its performance.
