Hong Kong, 24 August 2011 - The Hongkong and Shanghai Hotels, Limited (HSH) announced its unaudited interim results today.
Commenting on the Group’s interim results, Managing Director and Chief Executive Officer Mr. Clement K.M. Kwok said: “Our operating results for the first half of 2011 were impacted by the massive earthquake and tsunami which struck Japan on 11 March. This had a significant adverse impact on the business results of The Peninsula Tokyo which, prior to the earthquake, had been trading at levels above the previous year. Generally, the Hotels Division had a positive first quarter but has seen momentum slowing in several markets during the second quarter.”
The Hotels Division recorded a 5% increase in revenue compared with the first half of 2010. The RevPAR in all the hotels improved over the same period last year, apart from The Peninsula Tokyo where RevPAR fell by 18%. The RevPAR growth has been mostly driven by increases in the average room rate. There was also robust demand for space at the hotels’ shopping arcades, although The Peninsula Beijing’s arcade recorded slightly lower occupancy due to renovation work.
In the Commercial Properties Division, occupancies at the Group’s principal assets remained largely at full capacity. The various businesses in the Clubs and Services Division have mostly shown improved performance year-on-year.
“All our operations continue to take appropriate measures to contain costs in order to mitigate the impact on the Group’s results from the Japan earthquake and in recognition of the uncertain global economic environment,” said Mr. Kwok.
The total turnover for the period amounted to HK$2,310 million, up 6% over the same period in
2010. EBITDA (earnings before interest, tax, depreciation and amortisation) increased by 4% to
HK$512 million.
After taking into account the increase in fair value of investment properties of HK$1,784 million (2010: HK$547 million) and the current and deferred tax charges of HK$98 million (2010: HK$87 million), profit attributable to shareholders in the six months amounted to HK$1,907 million. The Group’s underlying profit attributable to shareholders, which was calculated by excluding the post-tax effects of the property revaluation surplus and other non-operating items, amounted to HK$152 million (2010: HK$147 million).
Earnings per share and underlying earnings per share were HK$1.29 (2010: HK$0.47) and
HK$0.10 (2010: HK$0.10) respectively.
Shareholders’ funds increased to HK$31,102 million or HK$20.92 per share. Net borrowings decreased to HK$1,500 million and the Group’s gearing ratio remained at 5%. The Company has also provided a calculation of the adjusted net assets attributable to shareholders, which after taking into account the fair market valuations of hotel properties and golf courses, amounted to HK$34,094 million or HK$22.93 per share.
The Directors have resolved to pay an interim dividend of 4 HK cents per share (2010: 4 HK
cents per share).