Hongkong and Shanghai Hotels swings to $23m H1 profit from $289m loss

The Hotels division drove the recovery, with revenue up 10% to $3.1b.

The Hongkong and Shanghai Hotels, Limited (HSH) posted profit attributable to shareholders of $23m, a sharp reversal from a $289m loss in the same period last year.

Revenue rose 20% year-on-year to $3.9b, whilst earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by the same rate to $770m.

The Hotels division drove the recovery, with revenue rising 10% to $3.1b and EBITDA increasing 24% to $579m.

Greater China led the gains in revenue per available room (RevPAR), which rose 29% to $3,006 on stronger occupancy, higher average rates, and increased overseas visitor numbers. 

Asia, excluding Greater China, recorded a 1% increase in RevPAR to $2,712. Stronger occupancy in Bangkok and Manila offset softer overall demand in Japan.

RevPAR in the US increased 16% to $5,288, whilst Europe rose 11% to $6,756.

HSH's residential occupancy increased one percentage point to 97%, whilst arcade occupancy climbed seven percentage points to 93%.

Office occupancy in Hong Kong fell 15 percentage points to 72% amid challenging leasing conditions.
 

Residential occupancy held at 97% and arcade occupancy climbed 7 percentage points to 93% on improving luxury footfall, but office occupancy in Hong Kong fell 15 percentage points to 72% amidst a weak leasing market.