The five-star Shangri-La Hotel at The Shard is eyeing an improvement in its financial performance in 2024 despite its pre-tax loss widening during its latest year.
The hotel has reported a pre-tax loss of £7.3m for 2023, according to newly-filed accounts with Companies House.
The figure compares to the £6m pre-tax loss it posted in 2022.
However, the accounts also show that the hotel’s turnover increased from £45.8m to £49.2m over the same period.
The hotel occupies 18 floors from level 34 upwards and includes 202 rooms and suites as well as three dining venues and London’s highest hotel infinity pool.
Occupancy at the hotel rose from 62 per cent to 66 per cent in the year while the average daily rate dipped from £641 to £638.
The hotel’s revenue per room grew from £396 to £421 and food and beverage turnover increased from £15.9m to £17.4m.
Shangri-La Hotel at The Shard eyes 2024 boost
The Shangri-La Hotel said its widening loss was “due to inflationary pressure coming through in the labour market and having a higher labour cost impact of £2m vs 2022 combined with the impact from utilities of £600,000 and maintenance and repairs of £700,000”.
It added: “Continuing from 2022, the hotel’s most material operating cost is payroll.
“With inflation in [the] UK 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 said: “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 come after the company behind the viewing gallery at The Shard remained in the red for a fourth consecutive year despite it its revenue continuing to rise.
The attraction reported a pre-tax loss of £678,839 for 2023, according to accounts with Companies House.
The total came after the firm also posted a pre-tax loss of £622,359 for 2022.
The attraction at The Shard has not made a pre-tax profit since it reported a total of £2.3m in 2019.
Shard Viewing Gallery Management Limited said its increased loss was because the attraction was 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.