Luxury Shangri-La Hotel at top of London’s Shard fails to make profit since it opened four years ago
The luxury Shangri-La Hotel at the top of London’s Shard has failed to make a profit since it opened four years ago, company accounts reveal.
Occupying floors 34 to 52 of the tallest building in Western Europe, it features sweeping views of London landmarks, and boasts marble-clad bathrooms, butler service in its suites and an infinity pool that is 600ft above the city.
Even with a standard room rate of £399, the hotel’s occupancy was a healthy 79 per cent across the year.
High life: Shangri-La Hotel’s infinity pool (top right) is near the top of the Shard
But sky-high running costs have resulted in a total of £61.5 million in net losses since it opened in 2014. Chains usually do not reveal the performance of individual hotels as they are absorbed in overall group numbers.
But the Shard-topper is the only one in the UK run by Singapore-listed Shangri-La. The loss last year fell to £11.8 million, down £2.1 million on the previous year, the accounts say.
The report said it had seen some growth supported by a rising number of visitors attracted by a weaker pound, which made the euro and dollar-denominated tourist income stretch much further. About two-thirds of revenues are from room hire and the rest mostly from food and drink.
The accounts warn: ‘The London market continues with a high degree of uncertainty post-Brexit and remains highly competitive due to good supply of quality hotel rooms and new openings.’
Property experts Knight Frank reported in 2017 that 5,000 new hotel rooms had opened in London in the previous year.