On the 24th, Hotel Shilla reported that its consolidated financial statements for the previous year showed an annual operating loss of 5.2 billion won, marking a shift from a profit of 91.2 billion won the previous year.
During the same period, revenue increased by 10.6% to 3.9476 trillion won. The net loss turned to 61.5 billion won.
Hotel Shilla's operating loss for the fourth quarter of last year was 2.79 billion won, a decrease compared to the same period the previous year (1.83 billion won). Revenue and net loss during the same period were 947.8 billion won and 64 billion won, respectively.
Hotel Shilla attributed the results to a slow recovery in the duty-free institutional sector due to high exchange rates and a downturn in the global economy. The operating loss for the fourth-quarter duty-free TR sector widened to 4.39 billion won compared to the same period last year. Revenue for the TR sector in the fourth quarter increased by 0.2% to 773.5 billion won. City store revenue decreased by 16.4%, while airport store revenue increased by 15.7%.
However, the operating profit for the fourth-quarter hotel and leisure institutional sector increased by 40.4% to 1.6 billion won. Revenue for this sector was 174.3 billion won, a 5.3% increase compared to the same period last year.
A representative from Hotel Shilla noted, "The duty-free sector is difficult to predict, but we plan to focus on sound management to secure revenue," adding, "In the hotel sector, we will continuously improve performance based on product and service competitiveness."