The Hongkong and Shanghai Hotels reveal first quarter statistics
At its Annual General Meeting held today, The Hongkong and Shanghai Hotels, Limited (HSH) disclosed its unaudited first quarter operating statistics, showing a satisfactory overall performance from it
At its Annual General Meeting held today, The Hongkong and Shanghai Hotels, Limited (HSH) disclosed its unaudited first quarter operating statistics, showing a satisfactory overall performance from its hotels division.
Commenting on the year-to-date results, HSH Managing Director and Chief Executive Officer Mr Clement K.M. Kwok said, “The Peninsula Hotels have generally performed in line with expectations in the first quarter. The Peninsula Hong Kong has seen a strong growth in revenue as compared to a year ago when the hotel was under renovation and The Peninsula Tokyo has continued its strong recovery.”
The RevPAR of The Peninsula Hong Kong showed a 24 percent decline as compared with the same period last year. However, this is not a like-for-like comparison as the hotel was under renovation last year, which resulted in the hotel having a reduced inventory of only 135 rooms from September 2012 to May 2013.
The Peninsula Tokyo has continued to benefit from improved market conditions and reported a 19 per cent increase in RevPAR. The Peninsula Hotels in other parts of Asia experienced a five per cent decrease in RevPAR due to the highly competitive landscape and political uncertainties. Our hotels in Shanghai, Beijing and Manila have all seen reduced rates in 2014, although occupancy has been maintained. The Peninsula Bangkok continues to be negatively impacted by the ongoing local political conflict.
The Peninsula Hotels in the United States recorded a three per cent increase in RevPAR, resulting from a five per cent increase in average room rates despite reduced occupancy.
Residential Leasing: Occupancy at The Repulse Bay Complex declined by 11 percentage points due to the subdued market conditions in Hong Kong for high-end residential leasing. In addition, the overall occupancy was negatively impacted by the lower occupancy in de Ricou Tower, which reopened in August 2013 after an 18-month closure for a complete renovation.
Shopping Arcades: The shopping arcades in The Peninsula Hotels, The Peak Tower and The Repulse Bay continue to be essentially full, with 99 per cent occupancy and an increased yield of 12 per cent year-on-year, reflecting the strong demand from premium brands for retail space.
Offices: Yield from the Group’s office leasing increased by seven per cent year-on-year, due to the increased occupancy and average rental rates in St. John’s Building, located in Hong Kong.
Outlook and Developments
The Group is delighted to report that The Peninsula Paris is set to open later in 2014. On 28 January 2014, we entered into a definitive shareholders agreement with Yoma Strategic Holdings Ltd to develop the former headquarters of the Myanmar Railway Company into The Peninsula Yangon. The agreement, subject to conditions and approval, will seek to redevelop and restore the heritage building which dates from the 1880s.
About The Hongkong and Shanghai Hotels, Limited (HSH)
Incorporated in 1866 and listed on the Hong Kong Stock Exchange (00045), The Hongkong and Shanghai Hotels, Limited is the holding company of a group which is engaged in the ownership, development, and management of prestigious hotels and commercial and residential properties in key locations in Asia, the United States and Europe, as well as the provision of tourism and leisure, club management and other services. The Peninsula Hotels portfolio comprises The Peninsula Hong Kong, The Peninsula Shanghai, The Peninsula Beijing, The Peninsula Tokyo, The Peninsula New York, The Peninsula Chicago, The Peninsula Beverly Hills, The Peninsula Bangkok, The Peninsula Manila and The Peninsula Paris (expected opening in 2014). Projects under development include The Peninsula London and The Peninsula Yangon. The property portfolio of the Group includes The Repulse Bay Complex, The Peak Tower, The Peak Tramways and St. John’s Building in Hong Kong; The Landmark in Ho Chi Minh City, Vietnam; the Thai Country Club in Bangkok, Thailand, and 21 avenue Kleber in Paris, France.