Hongkong & Shanghai Hotels Ltd. · HKEX:45

Hongkong & Shanghai Hotels — The Hongkong and Shanghai Hotels — FY2024 Earnings Presentation

38 slides from Hongkong & Shanghai Hotels's earnings presentation, Mar 31, 2025

  1. Slide 1: The Hongkong and Shanghai Hotels 2024 Annual Results

    The Hongkong and Shanghai Hotels 2024 Annual Results 31 March 2025 1

  2. Slide 2: Disclaimer

    Disclaimer This presentation (“Presentation”) is made available by The Hongkong and Shanghai Hotels, Limited (“HSH”) for general purposes only. Nothing contained in this Presentation is intended to constitute a public offer under any legislation or an invitation or inducement to engage in any invest

  3. Slide 3: Content

    Content  Key Messages  2024 Highlights and Financial Results  Hotels Highlights by Region  Commercial Properties Performance  Peak Tram, Retail and Others Performance  Sustainable Luxury Vision 2030  Outlook  Q&A 33

  4. Slide 4: Our Priorities: Stabilise Finances; Prepare for Growth

    Our Priorities: Stabilise Finances; Prepare for Growth  Operational results reflect an emerging recovery from the difficult years of the pandemic  Underlying loss contained to HK$176 million; no final dividend  Net loss for the year mostly related to:  depreciation attributed to The Peninsula Lo

  5. Slide 5: 2024 Highlights and Financial Results

    2024 Highlights and Financial Results 5 5

  6. Slide 6: 2024 Highlights

    2024 Highlights Revenue Profitability Net op. cashflow2 Liquidity buffer, gearing Project Update and credit rating Excl. residence sales proceeds1 EBITDA Excl. residence sales proceeds +18% +32% HK$ 2.8b The Peninsula HK$ 6,838m HK$ 1,446m HK$ 523m Available committed facilities New York 2023 HK$5,8

  7. Slide 7: Hotels Revenue

    Hotels Revenue +19%  Higher revenue driven by the full year operation of The Peninsula London and the strong performance of The Peninsula Tokyo Hotel revenue  Loss of revenue during the renovation of The Peninsula New York Rooms F&B HK$'m Arcade & offices Others  Results reflect an emerging recov

  8. Slide 8: Commercial Properties

    Commercial Properties Revenue Revenue +40% Sales of residential apartments HK$'m Office  Revenue increase driven by sales 5,000 Shopping arcades and others Residential of 7 Peninsula Residences in 4,340 London 4,000 +40% 3,110  Improved occupancy at the Repulse 3,000 Bay 3,452 2,000 2,298  Signif

  9. Slide 9: Peak Tram, Retail and Others

    Peak Tram, Retail and Others Revenue +17%  Exceptional performance of the Peak Tram after significant upgrade, with visitor numbers exceeded pre- pandemic level  Merchandising division reported increase in revenue but profitability needs to improve Club and Services Revenue HK$'m Merchandising Gol

  10. Slide 10: Profit or Loss Summary

    Profit or Loss Summary (HK$ million) For the year ended 31 December 2024 2023 Changes Total revenue 10,290 8,112 27% EBITDA 1,446 1,098 32% Depreciation and amortization (686) (520) -32% Net financing charges (754) (293) -157% Share of results of joint ventures and associates (108) (184) 41% (Decrea

  11. Slide 11: Cash Flow Summary

    Cash Flow Summary (HK$ million) For the year ended 31 December 2024 2023 Operating EBITDA (before pre-opening and project expenses and residential 1,207 1,101 sales) Changes in working capital (excluding those relating to The Peninsula London (189) 267 Residences) and tax payment Normal capital expe

  12. Slide 12: Capital Structure and Financial Position Summary

    Capital Structure and Financial Position Summary Credit Metrics Financial Position Summary Financing Arranged in 2024 (HK$ million) 2024 2023 HK$2.8b Available liquidity As at 31 Dec HKD 2.8b HK$3.5b Total cash 895 881 Equivalent of refinancing executed in 2024 Total sale proceeds of 7 completed apa

  13. Slide 13: Hotels Highlights by Region

    Hotels Highlights by Region 13

  14. Slide 14: Europe

    Europe | ore ee ey) ae Y

  15. Slide 15: The Peninsula London

    The Peninsula London picture  Grand opening held on 18 June 2024 Revenue + 549%  Rooms business gaining momentum and banquets and Spa performing well Occupancy + 20 pp  Brooklands’ two Michelin stars retained in Jan 2025 ARR - 11% RevPAR + 29%  7 luxury Residences sold in 2024 (17 out of 24 sold

  16. Slide 16: Satisfactory momentum in the first full year operation

     Satisfactory momentum in the first full year operation Revenue + 96%  Achieved RevPAR #3 in the city for the full year of 2024 Occupancy + 24 pp  Strong F&B performance ARR - 22% RevPAR + 53% 16

  17. Slide 17: USA

    USA 17

  18. Slide 18: The Peninsula New York

    GC TO CHANGE TO PIC WITH CHERRY BLOSSOMS Revenue - 15%  Completed a significant renovation in Sept 2024 Occupancy - 2 pp  Revenue negatively affected during renovation but room rates and RevPAR improved once the new ARR + 17% rooms product became available RevPAR + 14%  Strong F&B revenue 18

  19. Slide 19: 19

    19

  20. Slide 20: Renovation

    RENOVATION 20

  21. Slide 21: Renovation

    RENOVATION 21

  22. Slide 22: Renovation

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  23. Slide 23: Renovation

    RENOVATION 23

  24. Slide 24: Renovation

    RENOVATION 24

  25. Slide 25: Renovation

    RENOVATION 25

  26. Slide 26: Asia

    Asia 26

  27. Slide 27: Positive results in revenue, occupancy and RevPAR

    Revenue + 3%  Positive results in terms of revenue, occupancy and RevPAR Occupancy + 6 pp  Gradual improvement in the overall tourism sentiment in Hong Kong with visitors returning ARR - 5% from the traditionally strong long-haul markets from US and Europe RevPAR + 10%  The Peninsula Arcade was 9

  28. Slide 28: Strong 2024 with rates, occupancy and RevPAR growth

    GC TO CHANGE TO PIC WITH CHERRY BLOSSOMS Revenue + 21%  Strong 2024 with rates, occupancy and RevPAR achieving significant growth, returning to Occupancy + 11 pp pre-pandemic results, driven by robust international business from US, UK and Hong Kong ARR + 11%  Improved F&B performance with banquet

  29. Slide 29: Commercial Properties Performance

    Commercial Properties Performance 29

  30. Slide 30: Positive leasing environment with over 90% average occupancy

     Positive leasing environment with over 90% average occupancy Revenue + 5%  Improved residential revenue and occupancy as demand is returning from both the local market and expatriates  Strategic review of the arcade being undertaken 30

  31. Slide 31: Strong performance in 2024

     Strong performance in 2024 Revenue + 20%  Revenue and occupancy improved  Visitors to Sky Terrace 428 improved significantly due to successful sales of combo tickets with the Peak Tram 3131

  32. Slide 32: Peak Tram, Retail and Others

    Peak Tram, Retail and Others 32 32

  33. Slide 33: Peak Tram: strong business after upgrade

    Revenue  Strong business after upgrade completed in 2022 +41%  Patronage returned to pre-pandemic levels, with the Peak Tram operating at full capacity on certain days 33

  34. Slide 34: Retail business affected by softer market

     Business was affected by a softer retail market in Hong Kong and Mainland China Revenue + 12%  Work to be done on improving profitability and reducing costs  To launch new categories of products including “lifestyle” to develop a broader range of luxury gifting  Planning for a refurbishment of

  35. Slide 35: Sustainable Luxury Vision 2030

    Sustainable Luxury Vision 2030 Sustainable Luxury Vision 2030 35

  36. Slide 36: Outlook

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  37. Slide 37: Stable Outlook; Cautiously Optimistic

    Stable Outlook; Cautiously Optimistic  Generally stable outlook for various businesses  Cautiously optimistic for the year ahead  Improving long-haul market for leisure travellers in Hong Kong; geopolitical tensions remain a general concern  Strong business environment for the Peak Tram  Strong

  38. Slide 38: Q&A

    Q&A 38

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