The Hongkong and Shanghai Hotels (45) H2 2024 earnings summary

Executive summary

• Revenue rose 26–27% year-over-year to HK$10.3B–HK$10.99B, driven by The Peninsula London’s full-year contribution and strong residential sales.

• Net loss of HK$943M was reported, mainly due to higher depreciation, increased financing charges, and property revaluation losses.

• Underlying loss narrowed to HK$176M, reflecting operational recovery; no final dividend declared for 2024.

• Financial position remains stable with net assets of HK$35.4B and net debt to total assets at 23%.

• Focus remains on stabilizing new hotels, reducing borrowings, and growing profitability.

Financial highlights

• Total group revenue rose 27% to HK$10.3B, including HK$3.5B from seven Peninsula London residences sold.

• EBITDA increased 32% to HK$1.45B; net operating cash flow (ex-residences) was HK$523M.

• Operating profit rose 31% to HK$760M; loss per share was HK$(0.57) compared to HK$0.09 last year.

• Net external borrowings decreased 17% to HK$12.5B; significant net debt reduction of HK$2.5B.

• Adjusted net assets per share at HK$24.01, down 4% year-over-year.

Outlook and guidance

• Business outlook is stable with cautious optimism for 2025, supported by recovery in luxury tourism and improving long-haul leisure travel, especially in Hong Kong and Japan.

• Peninsula Hong Kong started 2025 ahead of budget; Peninsula New York expects growth post-renovation.

• Europe focus is on stabilizing new hotels in London and Istanbul, with Paris performing well.

• Strong demand for residential apartments at The Repulse Bay.

• Geopolitical tensions and global economic uncertainties remain a concern.