Peninsula Hotels posts 10% profit rise

Hongkong & Shanghai Hotels (HSH), the company that operates the Peninsula Hotels brand, has posted a strong rise in profits for the first half of 2015.

In the six months to 30 June 2015, the company’s underlying profits jumped 10% to HK$265 million (US$34m), despite a 1% decline in revenues, to HK$2.69 billion.

The Peninsula Hong Kong (photo by Lee Snider Photo Images)
The Peninsula Hong Kong (photo by Lee Snider Photo Images)

Clement Kwok, managing director & CEO of HSH, said the first half of 2015 was a “significant time for our company’s long-term development”.

“The grand opening party held in April for The Peninsula Paris was a great success… [and] in London we have made good progress.

“We commenced the major rooms renovation at The Peninsula Chicago, with the first rooms delivered receiving excellent feedback from guests. Preparations have also been made for the major renovation at The Peninsula Beijing where we expect construction to begin shortly,” he added.

The dip in revenue was caused by “weaker tourist arrivals in Hong Kong, weak demand during the winter first quarter in Paris, New York and Chicago, and some rooms being taken out of commission ahead of the renovations at The Peninsula Beijing and The Peninsula Chicago”, according to Kwok.

In terms of overall performance, HSH’s systemwide occupancy increased three percentage points to 69%, while average daily rates (ADR) climbed 9.4% to HK$3,589. This pushed the company’s revenue per available room (revPAR) up 13% to HK$2,459.

Moving forward, Kwok said that HSH “remains in a strong financial position”.

“With our long-term outlook and the exciting new projects that we are developing, we remain confident and positive about the future, whilst being ready and able to ride out the shorter term fluctuations in the markets in which we operate,” he concluded.

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