In China, Shangri-La International is developing a new city resort in Zhoushan, Zhejiang province. Targeted to open in 2019, the 300-room property will be located in the middle of the city’s new municipal area.
Separated from the mainland by a narrow body of water, Zhoushan is made up of islands and lies across the mouth of the Hangzhou Bay. Traditionally being the largest fishery in China, its economic base has been diversified with the development of secondary and tertiary industries in recent years.
Hong Kong-based Shangri-La Hotels and Resorts currently owns and/or manages 95 hotels under the Shangri-La brand with more than 39,000 rooms. The group has a substantial development pipeline with upcoming projects in Mainland China, Cambodia, Hong Kong, India, Myanmar, Philippines, Saudi Arabia and Sri Lanka.
The expansion is a positive sign for Shangri-La, which reported net losses for the first half of 2015 and said a weak outlook for the global economy and the depreciations of the Chinese renminbi would likely result in deeper losses. The company reported a net loss of U$900,000 for the first six months of the year, down from net profits of $37.8 million in the same period in 2014. Losses in China alone were $34.3 million compared to $15.5 million.