The Peninsula Hotels

Our group comprises three key divisions – Hotels, Commercial Properties and Peak Tram, Retail and Others.

1. Hotels Division

The group’s Peninsula hotels division delivered a resilient and broadly positive performance across all regions in 2025, enjoying steady demand in our key cities and enhanced brand recognition as our two newest hotels in London and Istanbul ramp up operations. Our management teams focused on ultra-personalised guest experiences and enhancing our food and beverage offerings, as well as improving our existing assets through continued renovations and refreshments.

Greater China

Performance was stable, supported by inbound demand recovery and expanded visa-free travel to Chinese Mainland. While price sensitivity among domestic consumers remained noticeable in terms of luxury spending, international long-haul segments, particularly from the Middle East and Russia, contributed positively to revenue momentum. All three Peninsula hotels in the region delivered solid room and banqueting results, although food and beverage remained softer due to tightened consumer spending.

In Hong Kong, food and beverage remained soft due to outbound competition from the Greater Bay Area and tighter consumer spending. Retail arcades were broadly stable despite a softer luxury retail backdrop. Shanghai strengthened in the second half, supported by visa-free policies and the return of major events, with cost discipline aiding margins. Beijing faced softer demand early in the year amid ongoing long-haul weakness and US-China geopolitical tensions; however, performance improved later on the back of numerous diplomatic delegations with heads of state and robust family business, which supported occupancy and rate across key periods. Retail arcades were broadly stable despite a softer luxury retail backdrop.

Europe

European operations delivered healthy results, with strong momentum in rooms and events supported by sustained brand visibility, significant accolades, and the positive publicity positioning of our newer hotels in London and Istanbul. Although rate competition remained an industry-wide challenge, refined pricing strategies, refreshed food and beverage concepts and continued brand-building initiatives helped maintain revenue and EBITDA growth across the region.

Despite market-driven rate pressure, London delivered year-on-year EBITDA improvement supported by a more efficient cost base; food and beverage benefited from strengthened culinary positioning, including Brooklands retaining two Michelin stars, and refreshed concepts such as the Little Blue noodle bar and the Soleil by Claude summer pop-up, while the hotel continued to build its reputation as a gathering place for classic and supercar aficionados through curated events and activations. Paris ended the year exceptionally strong with robust food and beverage and disciplined cost control, while Istanbul navigated geopolitical and several earthquakes by building a strong domestic business and delivering exceptional waterfront events and society weddings, further enhanced by the launch of the Pen 1 yacht to offer an elevated arrival experience and curated Bosphorus excursions.

USA

The US portfolio delivered solid year-on-year improvement, supported by strong domestic travel, the post-renovation rebound in New York, and steady group and leisure demand across major cities. Chicago maintained robust results driven by group business and brand strength, despite unexpected increases in property tax liabilities. Beverly Hills delivered very strong rooms performance, supported by resilient transient demand and long-stay Middle East medical travel, with major events and seasonal pop-ups helping lift food and beverage engagement.

Asia (excluding Greater China)

Other Asia delivered improving year-on-year performance, supported by targeted rate strategies, strong banqueting and weddings, and successful regional event programming. Tokyo achieved record-breaking metrics driven by robust inbound travel, the Sakura season, international groups and experiential showcases, including the Kamon art installation and the Japan Driving Experience, with a renovation planned in 2026 to upgrade in-room technology, guestrooms, food and beverage outlets and public areas. Bangkok remained resilient despite border disruptions, an earthquake, and a period of national mourning, while Manila benefited from higher occupancy and RevPAR supported by groups and solid domestic demand, contributing positively to regional results.

2. Commercial Property Division

Commercial properties continued to provide a stable earnings base for the group. In 2025, performance in the group’s retail properties remained steady, despite a soft trading environment in some regions. The Hong Kong prime office market remains well supplied with new high quality office space, creating a more challenging situation for landlords.

Robust leasing momentum and improved occupancy at The Repulse Bay supported steady year-end results, with the retail arcade benefiting from an enhanced tenant mix and continued refurbishments helping to strengthen positioning and footfall.

The Peak Tower recorded strong improvement in visitors supported by refreshed offerings and Peak Tram combo-ticket success, as well as some new high-end retail and food and beverage tenants. Hong Kong’s prime office market remains well supplied with new high quality office space; as a result, St John’s Building faced a softer market in 2025.

As of 15 January 2026, our group is no longer managing The Landmark Vietnam and we would like to thank our partners, the Board and all of our employees for their contribution to our success over the years.

21 Avenue Kléber in Paris remained fully occupied.

3. Peak Tram, Retail & Others

The division delivered a strong full-year performance, with the Peak Tram continuing to be a major contributor. Increased patronage, supported by successful brand collaborations with Disney and Pop Mart, helped drive revenue, while cost-efficiency initiatives supported strong EBITDA growth.

Revenue at Peninsula Merchandising increased compared to the previous year, supported by the opening of a refreshed The Peninsula Boutique at Hong Kong International Airport and the successful launch of a new “Hong Kong souvenir” collection. The Mid-Autumn collaboration with Lane Crawford and the rollout of new lifestyle categories, such as leather goods and whisky, were also highlights.

The Quail delivered a strong performance driven by a revised rate strategy, strengthened partnerships and the launch of online booking channels, with its signature event The Quail Motorsports Gathering, held in August, continuing to bring significant sponsorship income. Peninsula Clubs & Consultancy Services (PCCS), which manages The Hong Kong Club, Hong Kong Bankers Club and The Refinery, reported higher revenue year-on-year from increased management fees.

In addition, the launch of Primo Posto, our first freestanding restaurant concept, marked an important milestone in expanding our standalone food and beverage portfolio.