The state of the world economy has made many tourists lose the will to travel. However, humanity’s natural urge to see new places, and meet new people cannot be eradicated. With the economy picking back up, the global tourism industry is on its way to recovery.
Even though unofficial accommodation providers such as Airbnb are on the rise, the hotel industry is still very much alive because it offers services that Airbnb cannot. The irreplaceable premium hotels will still continue to do well in the face of such competition.
InvestAsian encourages investment into the hotel industry at this time because of a rising global affluent class that demands travel – especially in Asia. When thinking about the hotel industry, a name that elicits instant recognition is Shangri-La (HKG:0069).
2015 Was Rough for Shangri-La
2015 was the toughest time for the global hotel operator in recent history with the group suffering losses from many of the regions that contributed profit in 2014. Reporting losses for the first time at $0.9 million (as opposed to 2014’s net profit of $37.8 million), the Shangri-La’s shares fell to about half their former price.
This is where the opportunity comes in. With Shangri-La group poised for a better year, there is no doubt that the share prices will recover. InvestAsian believes that the time is now to add Shangri-La Asia Limited your portfolio.
One of Asia’s Best Hotel Brands Rises Again
While Shangri-La is one of the better known hospitality brands in Asia, it is also an investment holding company which owns many other hotel brands such as Traders, Hotel Jen, Summer Palace, Rasa, and more.
Already on the rise for the past month, Shangri-La’s stock price could continue its upward trend. We believe that the company is in a good place to rebound from the global economic downturn.
Shangri-La is well diversified, involved not only hotel ownership but also property rentals and hotel management services. The company is expecting an even brighter future where the global economy picks itself up once again. Recovering from an unexpected loss in the previous year, Shangri-La looks stronger than ever.
Currently trading at 9.19HKD, about half of its former peak price, Shangri-La stock is the investment of the week.