Hotel Shilla Returns to Profit in Q1 With 20.4 Billion Won Operating Gain

Hotel Shilla said Thursday it swung to an operating profit in the first quarter (January-March), as it focused on profitability despite a weak duty-free market and pressure from a strong exchange rate.

The company reported first-quarter revenue of 1.0535 trillion won, up 8.4% from a year earlier. Operating profit totaled 20.4 billion won, reversing a year-earlier loss. Hotel Shilla said the results reflected efforts to secure a stable earnings base in a difficult business environment.

In its travel retail, or TR, business, the company said the industry remained under strain from the strong exchange rate and a weakening global economy, but it concentrated on strengthening fundamentals with a profitability-first approach. Its hotel and leisure business maintained steady performance despite the seasonal off-peak period, helped by the opening of new hotels and an increase in foreign tourists.

A company official said Hotel Shilla will continue its focus on improving fundamentals as operations stabilize. “The TR division will secure stable profitability through ongoing improvements to its business structure and respond proactively to changes in the external environment and the duty-free market,” the official said. “The hotel and leisure division will strengthen brand competitiveness based on its three-brand system to build a foundation for continued growth,” the official added.