Hongkong and Shanghai Hotels Ltd
HKEX:45

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Hongkong and Shanghai Hotels Ltd
HKEX:45
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Price: 5.95 HKD -0.5%
Market Cap: 9.9B HKD

Hongkong and Shanghai Hotels Ltd
Investor Relations

Hongkong and Shanghai Hotels Ltd., famously helming the prestigious Peninsula brand, traces its origins to the early 20th century. What began as a singular property in Hong Kong in 1928 has evolved into a distinguished ensemble of luxury hotels, clubs, and residential properties worldwide. Through decades marked by historical upheavals and global transformations, the company has consistently upheld a reputation synonymous with luxury and timeless elegance. The Peninsula hotels are not mere accommodations; they offer immersive experiences that blend tradition with cutting-edge technology. Catering to a clientele that demands privacy, exclusivity, and unparalleled service, the company ensures that every guest interaction echoes its commitment to refined hospitality.

Beyond the opulent facades of its hotels, Hongkong and Shanghai Hotels Ltd. has astutely diversified its portfolio. Its revenue streams are bolstered not just by lodging, but also through upscale culinary venues, wellness and spa services, and luxury retail arcades housed within its properties. This strategic embrace of ancillary services allows the company to capture value across numerous touchpoints of the luxury experience. Meanwhile, the real estate aspects of the business, from residential leasing to exclusive clubs, provide stable income in fluctuating market conditions. By intertwining innovative hospitality practices with strategic diversification, the company not only enhances its profitability but also strengthens its position as a beacon of luxury in the global hospitality landscape.

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45
Hang Seng (Hong Kong)
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Last Earnings Call
Fiscal Period
Q2 2024
Call Date
Aug 7, 2024
AI Summary
Q2 2024

Revenue Surge: Consolidated revenue jumped 89% to $4.6 billion, mainly due to sales of Peninsula London Residences and new hotel openings.

Profitability Hit: The group reported a loss of $448 million, reversing from a $95 million profit last year, due to high depreciation, increased interest costs, and property revaluation losses.

London & Istanbul Ramp-Up: Peninsula London and Istanbul are seeing strong business momentum, but their earnings are not yet covering high depreciation and interest expenses.

Hong Kong Weakness: The second quarter was particularly weak for Hong Kong operations amidst soft tourism and economic sentiment.

Liquidity & Debt: Net borrowings fell 7% to $14.1 billion, with available liquidity at $3.2 billion and a new A credit rating from Japan Credit Rating Agency.

No New Hotels: The company will focus on stabilizing new properties rather than launching new hotel projects in the near term.

Stronger Second Half Expected: Management expects the second half of the year to outperform the first, with key events and improved trading at new properties.

Key Financials
Revenue
$4.6 billion
Loss
$448 million
Underlying Loss
$257 million
EBITDA before nonrecurring expenses
$395 million
Net Cash Generated from Operations
$1.9 billion
Net Borrowings
$14.1 billion
Available Liquidity
$3.2 billion
Weighted Average Interest Rate
4.72%
Net Debt to Total Assets
25%
Interest Payments
$344 million
Revenue from Sale of Peninsula London Residences
$1.7 billion
Commercial Properties Revenue
$2.1 billion
St. John's Building Occupancy
86%
Property Revaluation Loss
$139 million
Other Earnings Calls
2024
2022

Management

Ms. Yi Ching Liao
Chief Corp. & Gov. Officer, Management Board Member, Interim CEO and Executive Director
No Bio Available
Mr. King Man Kwok C.P.A.
Advisor to the CEO & Executive Director
No Bio Available
Mr. Keith James Robertson
CFO, Member of Management Board & Executive Director
No Bio Available
Ms. Maria Razumich-Zec
Regional EVP, Member of Group Management Board & Managing Director of The Peninsula Chicago
No Bio Available
Ms. Sindy Tsui
Chief People & Culture Officer and Member of Group Management Board
No Bio Available
Mr. Joseph Chong
Reg. EVP of Asia of The Peninsula Hotels, MD of The Peninsula Hong Kong & Member of Management Board
No Bio Available
Ms. Ming Chen
Chief Property Development Officer & Member of Group Management Board
No Bio Available
Mr. Gareth Owen Roberts
COO, Member of Group Management Board & Executive Director
No Bio Available
Mr. Michael Garcia
Chief Information Officer & Member of Group Management Board
No Bio Available
Arnold Angeles
Vice President of Research & Technology
No Bio Available

Contacts

Address
8/F, St.George's Building, 2 Ice House Street, Central
Contacts
+85228407788.0
www.hshgroup.com