First Quarter 2020 Unaudited Operating Statistics




To: All Finance/Business/Travel Editors



Hong Kong, 14 May 2020 At its Annual General Meeting held today, The Hongkong and Shanghai Hotels, Limited (HSH) disclosed its unaudited first quarter operating statistics for 2020.

Commenting on the year-to-date results, HSH Chairman The Hon. Sir Michael Kadoorie said, “In the first quarter of 2020 we have seen the devastating impact of the COVID-19 coronavirus around the world. We have had to temporarily close our hotels in New York, Chicago, Paris, Tokyo, Bangkok and Manila, as well as the Thai Country Club and Quail Lodge & Golf Club, although the two golf courses have recently reopened in a limited capacity. While rents continue to come under pressure in the luxury retail market, office and residential leasing have been stable. We came into this crisis with low gearing and considerable liquidity. As at 31 December 2019, our net external debt to total assets was 13% and our company has HK$6.9 billion in undrawn loans. We have since obtained additional committed facilities. We are minimising cash spend as much as possible, and we believe our financial resources are currently sufficient to meet the group’s funding requirements for an extended period. We issued a profit warning in February 2020 and in light of the current situation, unless there are any significant changes in the near future, the negative impact trend is expected to continue. Our priority at this time is to preserve jobs and protect the livelihoods of our staff as we work hard to contain costs as much as possible, and to ensure the safety of our guests in the properties which remain open.”

The Peninsula Hotels

The Peninsula Hong Kong achieved a 2% increase in average room rates compared with the same period last year, although there was a 10pp decrease in occupancy. We were pleased to report average room rates for our hotels in USA and Europe increased by 3% with improved results achieved by The Peninsula Paris and The Peninsula Chicago. Occupancy increased by 2pp in our other hotels in Asia.

Commercial Properties

Residential Leasing: Occupancy at The Repulse Bay Complex was relatively stable considering the challenging market, decreasing 3% compared with the same period last year. Rents in the luxury sector in Hong Kong remain under pressure although the outlook is stable for the rest of the year.

Shopping Arcades: The shopping arcades in The Peninsula Hotels, The Peak Tower and The Repulse Bay continue to attract high quality tenants, however, the market has been negatively impacted and yield declined by one percentage point year-on-year.

Offices: Yield from the Group’s office leasing has remained stable over the same period last year with occupancy remaining flat at 95%.

Outlook and Developments

We believe the hotel industry will continue to be extremely challenging for the summer months and for the rest of the year as a result of continued uncertainty over the coronavirus. We are working on a strategic recovery plan for phased reopening of each of our properties that have been temporarily closed.

We are hopeful that the spread of the coronavirus will be brought under control in the next few months and the impact on the travel trade will gradually recede. However, we continue to be concerned about the political situation in Hong Kong and the possibility that the social unrest may continue and escalate during the summer of 2020.

As a company with a long-term focus, our priority is to maintain a strong financial position for the Group in order to fund our significant capital commitments for The Peninsula London, The Peninsula Istanbul and The Peninsula Yangon new hotel projects, as well as the Peak Tram expansion. Our commitment to the long-term development of the group and in particular The Peninsula brand remains unchanged. We take a long-term view of the investments that we make and we expect the new hotels in London, Istanbul and Yangon to enhance our earnings diversification and brand presence when they open from 2021 onwards.

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About The Hongkong and Shanghai Hotels, Limited (HSH)

Incorporated in 1866 and listed on the Hong Kong Stock Exchange (00045), The Hongkong and Shanghai Hotels, Limited is the holding company of a Group which is engaged in the ownership, development, and management of prestigious hotels and commercial and residential properties in key locations in Asia, the United States and Europe, as well as the provision of tourism and leisure, club management and other services. The Peninsula Hotels portfolio comprises The Peninsula Hong Kong, The Peninsula Shanghai, The Peninsula Beijing, The Peninsula Tokyo, The Peninsula Bangkok, The Peninsula Manila, The Peninsula New York, The Peninsula Chicago, The Peninsula Beverly Hills, and The Peninsula Paris. Projects under development include The Peninsula London, The Peninsula Yangon and The Peninsula Istanbul. The property portfolio of the Group includes The Repulse Bay Complex, The Peak Tower and St. John’s Building in Hong Kong; The Landmark in Ho Chi Minh City, Vietnam; and 21 avenue Kléber in Paris, France. The clubs and services portfolio of the Group includes The Peak Tram in Hong Kong; Thai Country Club in Bangkok, Thailand; Quail Lodge & Golf Club in Carmel, California; Peninsula Clubs and Consultancy Services, Peninsula Merchandising, and Tai Pan Laundry in Hong Kong.

For further information on this release, please contact:
The Hongkong and Shanghai Hotels, Limited

Lynne Mulholland
Director, Group Corporate Affairs
Tel: (852) 2840 7152 / 6718 8219
Lilian Lau
Manager, Corporate Affairs
Tel: (852) 2840 7743 / 9611 0502


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