Half Year 2024 Hongkong and Shanghai Hotels Ltd Earnings Call Transcript
Key Points
- Consolidated revenue increased by 89% to $4.6 billion, driven by the sale of Peninsula branded London residences and new hotel openings.
- The Peninsula London and Istanbul are showing positive momentum, with London achieving high RevPAR and significant revenue in recent months.
- The Repulse Bay and Peak Tower properties in Hong Kong experienced strong performance, with revenue improvements and high demand.
- The company received an A credit rating from Japan Credit Rating Agency Limited, reflecting strong financial management.
- Peninsula Merchandising revenue increased by 58%, indicating strong brand performance despite soft retail markets.
- The company reported a loss of $448 million for the period, compared to a profit of $95 million last year, due to high depreciation and interest costs.
- The Peninsula New York renovation impacted revenue, with a large portion of inventory unavailable during the period.
- Weak tourism sentiment in Hong Kong and a weak second quarter affected overall operating results.
- The company faces challenges in stabilizing new hotels in London and Istanbul, with profitability not yet achieved due to high fixed costs.
- The property revaluation deficit, although small in percentage terms, contributed to the negative financial results.
Good afternoon, ladies and gentlemen. Welcome to The Hongkong and Shanghai Hotels' 2024 Interim Results Presentation. My name is Clare, Assistant Director of Corporate Finance and Investor Relations. The interim results announcement will be posted on the Hong Kong Stock Exchange website after this session.
Our senior management is going to give a presentation, followed by the Q&A session. (Event Instructions) Presenting today, we have Mr. Clement Kwok, Chief Executive Officer; Mr. Keith Robertson, Chief Financial Officer; Mr. Gareth Roberts, Chief Operating Officer; and Ms. Ming Chen, Chief Property Development Officer. Now let's invite Mr. Kwok to begin the presentation. Mr. Kwok, please?
Thank you, Clare. Well, the first thing you notice is that of our team around this table, I'm the dinosaur. I have been doing this for 22 years, and this
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