The Hongkong and Shanghai Hotels (45) H1 2026 earnings summary

Executive summary

• Returned to profitability in H1 2026 with HK$23 million profit attributable to shareholders, reversing a HK$289 million loss in H1 2025, driven by strong revenue and EBITDA growth.

• Revenue from operations rose 8% year-on-year to HK$3,534 million, with total revenue including residential sales at HK$3,929 million, up 20% year-over-year.

• Strong double-digit RevPAR growth in Greater China (+29%) and the US (+16%), with Europe up 11%.

• Strategic investments exceeding HK$2 billion approved for flagship renovations in Hong Kong and Tokyo, supporting long-term growth.

• Vision 2035: Perform and Transform strategy underpins ongoing transformation, guest experience, and selective expansion.

Financial highlights

• Operating EBITDA increased 20–21% year-on-year to HK$770–775 million, with margin expanding from 13.6% in 2024 to 21.8% in H1 2026.

• Net cash from operating activities before working capital up 22% to HK$727 million; total net cash generated from operating activities up 71% to HK$1,043 million.

• Net external debt stable at 22% of total assets; net external borrowings down 6% to HK$11.9 billion.

• Weighted average gross interest rate reduced to 3.7%; 43% of borrowings at fixed rates.

• Net assets attributable to shareholders at HK$36,309 million.

Outlook and guidance

• Entering H2 2026 with improved momentum, stronger EBITDA, and positive demand outlook for hotels, supported by international travel recovery and luxury demand.

• Commercial properties expected to maintain resilient residential leasing; office leasing remains competitive but improving in core locations.

• Focus on operational discipline, guest engagement, and selective investment to strengthen the brand.

• Peak Tram, Retail and Others to focus on cost management and new partnerships.

• Board approved HK$2.1 billion in renovations for The Peninsula Hong Kong and Tokyo.