The Hongkong and Shanghai Hotels (45) investor relations material

Executive summary

• Operating revenue rose 13% year-over-year to HK$3,281 million, driven by strong performances in New York, London, and Tokyo, excluding non-recurring residential sales.

• Operating EBITDA increased 63% to HK$643 million, while the loss attributable to shareholders narrowed to HK$289 million from HK$448 million year-over-year; underlying loss improved to HK$216 million.

• Net assets attributable to shareholders stood at HK$35.5 billion, with net external debt to total assets at 25%.

• No interim dividend was declared due to the underlying loss.

• Strategic review underway to refine medium- and long-term strategy, with more details expected in early 2026.

Financial highlights

• Revenue from operations reached HK$3,281 million, up 13% year-over-year, with strong performance in Tokyo, New York, and London.

• Operating EBITDA (excluding London residence sales) increased by 63% to HK$643 million; overall EBITDA margin rose to 20%.

• Underlying loss reduced by 16% to HK$216 million, mainly due to depreciation and financing charges.

• Net cash inflow from recurring operations improved tenfold year-over-year to HK$366 million.

• Net assets per share: HK$21.30; adjusted net assets per share: HK$24.24.

Outlook and guidance

• Cautiously optimistic for the second half, with high season expected to benefit Paris, Tokyo, Beverly Hills, and New York.

• Geopolitical instability and trade tensions expected to challenge Greater China hotels and Istanbul.

• Continued demand for Repulse Bay residential apartments and strong visitor numbers at The Peak.

• Expense management prioritized in weaker markets.

• Continued investment in existing assets and focus on lease renewals at The Repulse Bay.