Shangri-La Hotels Running from the Bears

The listed global upscale Shangri-La chain has issued their 2008 financial results, which show a decline in net profit from US$340.9 million in 2007 to US$165.9 million in 2008. It's reporting season for many of Asia's international brands and there looks to be more talk of bears then bulls for the moment. In the 2008 Financial Results Announcement the company states "the recession in the USA, Europe and Japan and the uncertainty created by the political situation in Thailand, it is envisaged that the sentiment triggered by these developments will dampen both business and leisure travel and spending though the first half of 2009 at a minimum."
The announcement makes no specific mention of the Shangri-La <link>http://www.thephuketinsider.com/hotels/index.php*Phuket Resort</link> currently under development by an affiliate of Indonesia's PT Jan Darmadi Investindo Group and which is only under management contract to the chain. Currently work on site has slowed markedly and the residential villas for sale have been withdrawn from the market.
The site was purchased in 2005 from Hongkong and Shanghai Hotels Group who own the luxury Peninsula chain. With a site that is well situated at the northern end of Bangtao bay, near to the destination resort Laguna, the progress on the hotel has been subject to much discussion over the past few years.