The Hongkong and Shanghai Hotels (45) H2 2025 earnings summary

Executive summary

• Returned to profitability in 2025, with HK$320m profit attributable to shareholders, reversing a HK$943m loss in 2024, and underlying profit of HK$105m, driven by disciplined execution, strong brand positioning, and robust hotel and commercial property performance.

• Completed a comprehensive strategic review, resulting in Vision 2035: Perform and Transform, focusing on operational excellence, selective growth, and value creation under new leadership.

Financial highlights

• Revenue from operations (excluding residential sales) increased by 11% year-over-year to HK$7,583m, with operating EBITDA up 43% to HK$1,723m, reflecting strong flow-through from revenue growth and cost management.

• Underlying profit reached HK$105m, a turnaround from an underlying loss of HK$176m last year.

• Net cash from operations increased by 69% to HK$839m; net external debt to total assets stable at 23%.

• Major financing included a debut JPY16bn Samurai Bond and GBP425m refinanced Green Club Loan.

• Total consolidated revenue was HK$7,978m, down 22% due to fewer Peninsula London Residences sales.

Outlook and guidance

• Management remains cautiously optimistic for 2026, expecting continued recovery in luxury travel demand, steady progression, and a focus on profitable growth, digital transformation, sustainability, and workforce stability.

• Peninsula Tokyo and U.S. portfolio expected to remain top performers; London and Istanbul ramping up brand presence.

• Vision 2035 aims for balanced, intentional growth, operational excellence, and expansion into resorts and branded residences.