The Hongkong and Shanghai Hotels (45) H1 2025 earnings summary

Executive summary

• Operating revenue rose 13% year-over-year to HK$3.3 billion, 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 a net external debt to total assets ratio of 25%.

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

• Focus for H2 is on enhancing operational and financial performance, with a strategic review to be announced in early 2026.

Financial highlights

• Revenue from operations reached HK$3,281 million, up 13% year-over-year (excluding residential sales).

• Operating EBITDA rose 63% to HK$643 million, with overall EBITDA up 19% year-over-year.

• Underlying loss narrowed to HK$216 million, mainly due to depreciation and financing charges.

• Net cash generated from recurring operating activities increased 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 continue impacting Greater China hotels and Istanbul.

• Commercial property demand in Hong Kong and The Peak remains strong; continued investment in existing assets planned.

• Anticipates continued demand for unique, personalized, and sustainable luxury experiences.

• Expense management prioritized in weaker markets.