Corporate Logo(source: shillahotels.com )
Hana Securities said on September 3 that Hotel Shilla (008770) is increasingly being valued as a hotel operator rather than a duty-free retailer, noting that hotel operations currently account for 100% of operating profit due to losses in the duty-free segment. The brokerage maintained a “Buy” rating and a target price of 60,000 won.
Seo Hyun-jung, an analyst at Hana Securities, explained, “As of the second quarter of 2025, duty-free accounted for 83% of revenue and hotels 17%, but in terms of profit contribution, hotels represented 100% due to continued losses in duty-free operations.”
On the hotel business, Seo noted, “The five-star Shilla Hotel Seoul posted an occupancy rate (OCC) of up to 80% in the second quarter of 2025, while its average daily rate (ADR) continued to rise. Shilla Stay has also maintained a strong upward trend in ADR despite double-digit growth over the past two years.”
On duty-free operations, she said, “Hotel Shilla recorded an operating loss of 5.2 billion won in 2024, with the main drag being the duty-free division. City outlets suffered from weak demand and higher discount rates, while domestic and overseas airport locations continued to post losses due to rising lease costs.”
Seo added, “Both the duty-free and hotel businesses are poised to benefit from China’s approval of visa-free group tours. If the duty-free segment can deliver clearer visibility on profits, the revaluation of Hotel Shilla’s hotel business will be fully achievable.”
*[KOSPI]Hotel Shilla(008770) is an affiliate of Samsung Group and its main businesses are duty-free and hotel business. The market capitalization is 1.788 trillion won (as of September 2, 2025, closing price).
Corporate Logo(source: shillahotels.com )
Hana Securities said on September 3 that Hotel Shilla (008770) is increasingly being valued as a hotel operator rather than a duty-free retailer, noting that hotel operations currently account for 100% of operating profit due to losses in the duty-free segment. The brokerage maintained a “Buy” rating and a target price of 60,000 won.
Seo Hyun-jung, an analyst at Hana Securities, explained, “As of the second quarter of 2025, duty-free accounted for 83% of revenue and hotels 17%, but in terms of profit contribution, hotels represented 100% due to continued losses in duty-free operations.”
On the hotel business, Seo noted, “The five-star Shilla Hotel Seoul posted an occupancy rate (OCC) of up to 80% in the second quarter of 2025, while its average daily rate (ADR) continued to rise. Shilla Stay has also maintained a strong upward trend in ADR despite double-digit growth over the past two years.”
On duty-free operations, she said, “Hotel Shilla recorded an operating loss of 5.2 billion won in 2024, with the main drag being the duty-free division. City outlets suffered from weak demand and higher discount rates, while domestic and overseas airport locations continued to post losses due to rising lease costs.”
Seo added, “Both the duty-free and hotel businesses are poised to benefit from China’s approval of visa-free group tours. If the duty-free segment can deliver clearer visibility on profits, the revaluation of Hotel Shilla’s hotel business will be fully achievable.”
*[KOSPI]Hotel Shilla(008770) is an affiliate of Samsung Group and its main businesses are duty-free and hotel business. The market capitalization is 1.788 trillion won (as of September 2, 2025, closing price).