Uncertain but hopeful outlook for Peninsula Hotels operator

Hongkong and Shanghai Hotels (0045), operator of Peninsula Hotels, expects a relatively uncertain outlook for the second half of the year amid geopolitical tensions, but remains hopeful about continued growth in Hong Kong’s local tourism sector, the chairman said on Wednesday.

The Peninsula Hong Kong' turnout has been soft although the hotel enjoyed a stronger performance in March due to the Mega Events in the city, chairman Michael Kadoorie said in an exchange filing. "The Repulse Bay, Peak Tram and Peak Tower are ahead of expectations."

Occupancy across the group’s Greater China hotels stood at 55 percent in the first quarter, up 4 percentage points year-on-year but down 14 points from the previous quarter.

Average room rates fell around 12 percent year-on-year and 6 percent quarter-on-quarter to HK$4,014, while revenue per available room dropped 5 percent from a year ago to HK$2,211.

STAFF REPORTER