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The Hongkong and Shanghai Hotels, Limited Announces First Quarter 2014 Unaudited Operating Statistics

May 15, 2014 Financial No Comments Email Email

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.”

Peninsula Hotels

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.

Commercial Properties

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.

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