Hongkong and Shanghai Hotels swings to $320m profit

Hongkong and Shanghai Hotels (0045), operator of Peninsula Hotels, swung to a profit of HK$320 million in 2025 amid an improved global travel environment, turning the tables on a loss of HK$943 million from the year prior.

No final dividend was declared.

Stripping out the non-recurring expenses, the post-tax effect of net unrealised property revaluation movement and impairment provision, its underlying profit came as HK$105 million, improving from the loss of HK$175 million a year before.

Revenue fell 22.5 percent to HK$7.98 billion, among which its income from the hotel division rose 13.3 percent year-on-year to HK$6.43 billion, driven by the post-renovation rebound of The Peninsula New York, and the continued stabilisation and ramp-up of The Peninsula London and The Peninsula Istanbul, and strong growth at The Peninsula Tokyo.

Occupancy across the group's Greater China hotels rose to 65 percent, up 7 percentage points from a year ago.

Average room rates slid around 4.8 percent to HK$4,053, while revenue per available room increased 8 percent to HK$2,644.

Chief executive Benjamin Vuchot said Greater China is expected to experience uneven demand in early 2026, influenced by ongoing geopolitical tensions and slower long-haul recovery. 

Hong Kong stands to benefit from improving long-haul leisure trends and a more active events calendar, though competition for local spend, particularly from Shenzhen, is likely to persist, he added.

As The Peninsula Hong Kong is approaching its 100th anniversary in 2028, the company plans to enhance the hotel's physical assets in Hong Kong.