In This Article:
Release Date: March 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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The Hongkong and Shanghai Hotels Ltd (HKSHF) reported a significant improvement in revenue, increasing by 18% to 6.8 billion Hong Kong dollars, excluding sales proceeds from the Peninsula London residences.
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The company completed the sale of seven luxury residences in London, generating total proceeds of 3.5 billion Hong Kong dollars.
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The Peninsula New York underwent a comprehensive interior design refurbishment, completed on time and within budget, enhancing its appeal.
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The Peak Tram experienced a 40% increase in revenue year-on-year, with visitor numbers exceeding pre-pandemic levels.
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The Peninsula Tokyo achieved significant growth, returning to pre-pandemic results, driven by robust international business from the US, UK, and Hong Kong.
Negative Points
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The Hongkong and Shanghai Hotels Ltd (HKSHF) reported a net loss for the year, largely due to depreciation and financing charges related to the Peninsula London project.
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No final dividend for the year 2024 was proposed due to an underlying loss of 176 million Hong Kong dollars.
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The Peninsula New York's renovation negatively affected revenue during the period of closure from January to September 2024.
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The company faced a revaluation loss of investment properties amounting to 569 million Hong Kong dollars.
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Geopolitical tensions and a softer retail market in Hong Kong and mainland China impacted business performance.
Q & A Highlights
Q: How is the performance of Peninsula Hong Kong for the first quarter of 2025? A: The Peninsula Hong Kong has had a good start to the year, performing ahead of budget. Although specific numbers cannot be disclosed, the performance is significantly above expectations, which is reassuring. - Keith Robinson, CFO
Q: What is the impact of the Bangkok earthquake on Peninsula? A: The buildings and guests are safe, with only minor damage such as cracks. However, there are expected cancellations, and the full extent of the impact is still being assessed. - Chris Bell Lau, Chief Corporate and Governance Officer
Q: Can the company comment on the profitability of Peninsula London and Istanbul? Is the company satisfied with the results since opening? A: It typically takes about four years for a new luxury hotel to reach stabilized earnings. Both hotels opened in 2023 and are performing well, ranking third in their respective markets. Revenue is ahead of expectations, but it will take another 1-2 years to reach stabilized earnings. - Keith Robinson, CFO