Miramar Hotel and Investment Announces 2024 Annual Results

Miramar Hotel and Investment Company, Limited

Announces 2024 Annual Results

***

[Hong Kong - 18 March 2025] Miramar Hotel and Investment Company, Limited ("Miramar" or 'the Group", HKSE stock code: 71) announced today the audited results for the year ended 31 December 2024.

Overview

1. Resilient Performance in 2024
   In 2024, the Group recorded a revenue of HK$2,858.4 million, representing a year-on-year increase of 12.0%. The underlying profit attributable to shareholders increased by 1.2% to HK$830.5 million compared with last year (2023: HK$820.5 million), primarily driven by the steady performance of its four business segments. Notably, the travel segment posting an impressive 31.6% growth in revenue over last year. The annual average occupancy rate of office buildings and shopping malls exceeded 95%, and our hotel business also delivered strong performance, with The Mira Hong Kong and Mira Moon achieving annual average occupancy rates of 92% and 95%, respectively.
2. Acquisition and Redevelopment of Champagne Court into a New Hotel cum Commercial Complex to Foster Long-Term Growth
   The Group announced its plan for the acquisition of Champagne Court for redevelopment into a 23-storey high-end hotel cum commercial complex ("New Hotel cum Commercial Complex"). The New Hotel cum Commercial Complex will comprise 99 hotel guestrooms, shops, restaurants and banquet halls, and will involve the relocation of parts of the existing facilities from The Mira Hong Kong to the complex, thereby increasing the total retail space of Mira Place and bringing synergistic benefits to the Group's businesses.

1

Annual Results

The Group's revenue for the year 2024 amounted to HK$2,858.4 million (2023: HK$2,552.6 million), an increase of 12.0% against last year. The underlying profit attributable to shareholders (excluding the fair value of investment properties) increased by 1.2% to HK$830.5 million compared with last year (2023: HK$820.5 million). Mr. Lai Ho Man, Director of Group Finance, said, "The revenue from the Group's four business segments performed steadily, with the travel segment posting an impressive 31.6% growth in revenue over last year". The Board recommends a final dividend of HK30 cents per share to the shareholders listed on the Register of Members at the close of business on 17 June 2025 (Tuesday). The proposed final dividend is expected to be distributed to shareholders on 10 July 2025 (Thursday). Adding up with an interim dividend of HK23 cents per share paid on 14 October 2024, the total dividend payment for the whole year will be HK53 cents per share.

In 2024, the business environment in Hong Kong remained challenging. However, Miramar Group demonstrated remarkable resilience and maintained steady growth through its outstanding management team, diversified business portfolio and flexible response strategies in a dynamic global economic landscape.

The volatility of the global economy has posed significant challenges to the hospitality industry. Among these, the persistent strength of the US dollar has led to a high exchange rate for the Hong Kong dollar, dampening the sentiment of visitors' traveling to Hong Kong and curbing their consumer spending. Meanwhile, China's addition of 15 new unilateral visa-free and mutual visa- free countries in 2024 has expanded the number of visa-free countries to 63, resulting in a

2

substantial 93.4% year-on-year increase in the number of international flights from China to 580,000. More mainland visitors opted to travel to other countries via China's three major international aviation hubs - Beijing, Shanghai and Guangzhou - which, in turn, affected the number of overnight visitors and the hospitality business in Hong Kong. Apart from that, the increased northbound spending among Hong Kong residents in recent years has also exerted further pressure on the business environment of the local retail and food and beverage industries.

In response to these challenges, we implemented a series of strategic measures, including flexible pricing adjustments to maintain market competitiveness, actively launching creative products and services, and strengthening joint promotions with merchants and partners to expand our customer base. We also fully leveraged our e-commerce platform and customer database to drive business growth through precise marketing, ensuring stable development in the challenging environment. During the year, our travel business performed particularly well, with revenue increasing by 31.6% year-on-year. The annual average occupancy rate of office buildings and shopping malls exceeded 95%, and our hotel business also delivered strong performance, with The Mira Hong Kong and Mira Moon achieving annual average occupancy rates of 92% and 95%, respectively, reflecting the success of our marketing strategies and promotional efforts.

To further expand our customer base and ensure business stability, the Group has capitalized on the opportunity of Hong Kong's development as an Islamic offshore financial center by actively developing Muslim-friendly hotels and restaurants to broaden our market and customer base. Chinesology, the Group's Chinese restaurant, has become the first fine-dining Chinese restaurant in Hong Kong to receive the ''Halal-friendly Restaurant'' certification granted by the Incorporated Trustees of the Islamic Community Fund of Hong Kong (Board of Trustees (BOT)). The Mira Hong Kong and Mira Moon were also accredited as Muslim-friendly hotels with a Level 5 Rating from ''CrescentRating'', an internationally renowned Muslim travel certification authority, further strengthening the Group's market competitiveness.

Business Review

Hotels and Serviced Apartments Business

During the year, the overall revenue from the hotel and serviced apartment business amounted to HK$597.4 million, representing an increase of 2.7% compared with HK$581.9 million for the same period last year. Meanwhile, earnings before interest, taxes, depreciation and amortization

3

(EBITDA) recorded a profit of HK$139.9 million, representing a decrease of 8.8% compared with HK$153.5 million for the same period last year.

During the period under review, the persistently strong exchange rate of the US dollar continued to affect the tourism industry of Hong Kong. In response to this challenge, the Group's hotels took proactive and multi-pronged measures to expand their customer base and enhance competitiveness. In addition to implementing a more flexible pricing strategy, the Group focused on expanding the sales network through active promotion in the Greater Bay Area (GBA) and around the world. We launched a wide range of tour packages in collaboration with travel agencies in Mainland China and participated in the delegation visits to Hong Kong organized by the Hong Kong Tourism Board for the overseas tourism sector. In addition, the hotels launched various offers and promotional campaigns to enhance sales performance during low seasons, such as the introduction of air-ticket-and-hotel and high-speed-rail-and-hotel packages, which successfully attracted more travelers. In terms of the banquet business, we pursued innovation and change by organizing a number of thematic and festive events during the year. For example, various themed events were successfully organized in collaboration with consulates of various countries, in which the traditional rental mode of banquet venue was replaced with the revenue mode of tickets and meal coupons, which attracted a large number of guests, resulting in the outstanding performance of the banquet business. Meanwhile, the banquet business also introduced various thematic activities and adopted supporting online sales strategies to effectively broaden its customer base.

In terms of market expansion, the hotels also achieved significant results. For example, The Mira Hong Kong and Mira Moon of the Group, actively developed the Middle East and ASEAN markets during the year, and introduced various Muslim-friendly facilities and services, earning certification as Muslim-friendly hotels with a Level 5 Rating from ''CrescentRating'', an internationally recognized authority on Muslim tourism. These efforts successfully attracted more international travelers.

Thanks to the properly formulated business and operational strategies mentioned above, the occupancy rate of The Mira Hong Kong and Mira Moon increased further to 92.1% and 95.4% in 2024, compared with 89.8% and 95.0% in 2023, respectively, while the average room rate also reached HK$1,416 and HK$1,636. The revenue from the room rental business of The Mira Hong Kong recorded an increase of 1.7%, while the revenue from the room rental business of Mira

4

Moon declined by 3.5%. Revenue from the food and beverage business under the hotel segment of the Group also recorded an increase of 3.8% compared with the same period last year.

Property Rental Business

The revenue from the Group's property rental business remained stable at HK$791.3 million during the year, while EBITDA recorded a profit of HK$663.9 million, compared with revenue of HK$795.2 million and EBITDA of HK$670.1 million last year, indicating a slight decrease of 0.5% and 0.9% from last year, respectively. The average occupancy rate of office buildings and shopping malls for the year exceeded 95%.

During the year, the Group continued to enhance its semi-retail portfolio and actively expanded its customer base and foot traffic by upholding its core strategy for diversified tenant mix and unique shopping experience. In terms of tenant mix, we further optimized the tenant structure and adjusted the layout of its malls to improve foot traffic and extend customers' visiting time. Additionally, we strategically introduced lifestyle brands and international fashion brands to strengthen the competitiveness of our malls. Notably, the arrival of the iconic ''Swatch'' fashion watch store during the year not only enhanced the trendy image of the malls but also gave them a fresh look. Meanwhile, the international lifestyle brand MUJI expanded its business scale during the period under review, and added the MUJI Café as food and beverage (F&B) element to provide customers with a new shopping and dining experience, further enhancing the appeal of the malls. In addition, Mira Place partnered with MUJI for the first time to create the world's first large-scale Christmas decoration in a mall, ''Mira Giftmas with MUJI'', featuring a Christmas town fantasy that provided customers with a comprehensive festive experience integrating dining, shopping, and entertainment.

For the beauty sector, recognizing the market potential and trend, we stepped up our promotional efforts during the year and launched a thematic campaign named ''Beautiful Mi'', which incorporated beauty experiences, fashion, and a healthy lifestyle to bring customers a holistic sense of beauty and enjoyment, further reinforcing the market positioning of Mira Place in the beauty sector.

In addition, the mall launched thematic decorations and promotional campaigns covering festivals, food and beverage and culture, which not only effectively created a new shopping atmosphere but also maximized public relations and publicity benefits, drawing in substantial visitor traffic.

5

Meanwhile, the construction and enhancement of Mira Place 2 were completed during the year, further enhancing its identity and vibrancy and creating an even more spectacular shopping experience for customers. To actively promote green shopping, we also became the first mall to collaborate with CLPe to launch ''Mi Green Park'', an electronic charging and parking zone, in Tsim Sha Tsui, featuring the addition of multiple charging facilities for electric vehicles, thereby providing a more environmentally friendly park-and-shop experience for customers.

Change in Fair Value of Investment Properties

The Group's investment properties are stated at fair value and are reviewed on a semi-annual basis. The fair value of investment properties is determined with reference to the opinions obtained by the Group from an external professional surveyor firm (Cushman & Wakefield Limited). The fair value of the Group's total investment properties registered a net decrease of HK$76.7 million (2023: a one-off appreciation of HK$159.5 million in the value of the investment properties of the Group as a result of the compulsory sale order of its then interest in Champagne Court) during the year. The book value of the overall investment properties as at 31 December 2024 was HK$15 billion. The investment properties of the Group are held for the long term with the purpose of earning recurring income. The revaluation gain was non-cash in nature and had no substantive impact on the cash flow of the Group.

Food and Beverage Business

During the year, the Group's food and beverage business recorded revenue of HK$290.4 million and an EBITDA profit of HK$11.3 million, compared with revenue of HK$279.4 million and EBITDA profit of HK$29.9 million, representing an increase of 3.9% and a decrease of 62.4%, respectively as compared with last year.

In 2024, the food and beverage sector of Hong Kong continued to be under stress. It came across increasingly severe operating conditions due to challenges such as northbound spending by Hong Kong residents, rising food ingredient prices, and increasing labor costs. According to data from the Census and Statistics Department of the Hong Kong Government, the provisional estimate of total receipts of restaurants in Hong Kong for 2024 was $109.4 billion, representing a marginal annual decrease of 0.1% in value and 2.4% in volume compared with 2023. Specifically, receipts from Chinese restaurants decreased by 4.3% in value and 6.7% in volume. Under such circumstances, the food and beverage business of the Group navigated through the challenges and forged ahead to actively identify new opportunities and respond to the market changes by way

6

of optimizing the operations with stringent cost control. Key measures included vigorous development of the online sales business and the launch of a membership card consumption program in various restaurants, aiming at enhancing customer loyalty and increasing repurchase rates through exclusive offers.

To address the problems of manpower shortage and soaring labor costs, certain restaurants of the Group introduced self-service ordering systems to enhance operational efficiency and reduce reliance on human resources through technological solutions. In addition, the Group proactively explored different market positioning and brand concepts so as to attract more diversified consumer segments. By the end of 2024, we launched ''Daai Zaak'', an exquisite private dining restaurant featuring an innovative culinary concept and unique brand image, aimed at attracting customers and developing a broader clientele.

In terms of festival food, the strong sales performance of festive food products in 2023 continued its growth momentum with further brilliant performance this year. Revenue from the food processing workshop increased by 10.6% year-on-year. Notably, sales of Chinese New Year puddings reached a new high, serving as a key growth driver for the Group's festive food products.

Travel Business

During the period, travel business of the Group recorded strong growth, with revenue of HK$1,179.4 million with EBITDA profit of HK$102 million, compared with revenue of HK$896.1 million and EBITDA profit of HK$46.7 million in the same period last year, representing increases of 31.6% in revenue and a remarkable 118.4% in EBITDA profit. In particular, EBITDA reached a record high, reflecting the Group's success in capitalizing on the market recovery by precisely launching outbound tours to various countries and cruise tours. These offerings fully satisfied the exuberant demand for outbound travel products among locals as normalcy returned, driven by effective marketing strategies and operational management.

During the period under review, the Group also actively utilized technology to promote the operational efficiency of its travel business. By introducing advanced digital operation systems, the Group significantly reduced its reliance on human resources and achieved a higher level of automation. These systems effectively enhanced the customer experience by speeding up the booking process, improving accuracy and providing personalized recommendations, further boosting customer satisfaction and loyalty.

7

In terms of promotion, the Group strengthened its investment in digital marketing and online advertising during the year. Through precision data analysis, targeted promotions were carried out for different markets and customer segments, significantly increasing brand exposure and market coverage.

With the increase in Hong Kong's air capacity, the official opening of the third runway system at the Hong Kong International Airport, and the launch of additional routes and a flight incentive program by Airport Authority Hong Kong, it is expected that air capacity of Hong Kong will continue its steady growth, creating a more favorable market environment for the Group's travel business. Furthermore, sustained growth in demand for outbound travel, coupled with the Group's strong market network, profound market insights and technological applications, its travel business is expected to continue its robust growth in the future, further consolidating its leading position in the market.

Treasury Management and Financial Condition

The Group manages the exposure to exchange rate, interest rate, liquidity and financing risks arising from the course of its daily operations in accordance with its established policies, and closely monitors its own financial position and requirements, to ensure solvency and commitment. In terms of exchange rate risk, as the Group mainly operates in Hong Kong with its related cash flows, assets and liabilities denominated in HKD, the primary exposure arises from assets and business operations in Mainland China and UK, and bank deposits in RMB, GBP, AUD and USD. In terms of interest rate and liquidity risks, as the Group's capital is mainly denominated in HKD with no borrowings, the main interest rate risk of the Group is the interest rate risk of HKD deposit. There is no interest rate risk associated with financing and borrowing.

As at 31 December 2024, the Group had a consolidated cash position of HK$6 billion (31 December 2023: HK$5.6 billion) and no loans (31 December 2023: nil). In terms of financing risk, as at 31 December 2024, the total amount of credit facilities available to the Group was HK$0.9 billion (31 December 2023: HK$0.9 billion), none of them have been utilized (31 December 2023: nil). Accordingly, the gearing ratio (calculated by dividing the total consolidated borrowings by the total consolidated shareholders' equity) of the Group was nil (31 December 2023: nil). During the year, the Group has seized the investment opportunities continuously and made more investment in financial assets mainly for long-term purpose. As of 31 December 2024, long term equity

8

securities and current financial assets were HK$263.4 million (31 December 2023: HK$332.2

million) and HK$460.4 million (31 December 2023: HK$89.5 million) respectively. In 2024, capitalizing on the trend of interest rate cut in the United States in September and the booming stock market in Mainland China, the Group increased its equity investment successfully with gain (investment gain and dividend income) from securities investment amounted to more than HK$60 million for the year. The Group adopts a stable and healthy financial policy with more than sufficient funds and credit lines secured, which would enable the Group to cope with economic uncertainties in the foreseeable future, invest in any securities and bonds and execute investment-effective business development plans when appropriate.

Business Outlook

Looking forward, we remained confident in our future prospects. Earlier in 2025, the Group announced its plan for the acquisition of Champagne Court for redevelopment into a new hotel cum commercial complex. This plan represents a key component of the Group's strategic development and underscores our confidence in the market's recovery and growth potential. The plan includes the construction of a 23-storey hotel cum commercial complex (the ''New Hotel cum Commercial Complex''), comprising 99 hotel guestrooms, shops, restaurants, banquet halls, and approximately 21 private car parking spaces and 2 motor parking spaces. Among them, the average size of the standard guestrooms will be approximately 350 square feet, being about 30% larger than that of The Mira Hong Kong (which is approximately 270 square feet). The floor-to- floor height of the standard guestrooms of the new hotel will also be approximately 25% higher as compared to The Mira Hong Kong. Certain rooms on the higher floors of the new hotel will enjoy the scenic view of the neighboring Kowloon Park or the sea views. In addition, the reception lobby on the second level of the new hotel will have a floor-to-floor height of approximately 9 meters, and there will be a covered drop-off area on the ground floor, from which vehicles can access the car parks on the two basement floors.

Furthermore, the New Hotel cum Commercial Complex will be adjoining to The Mira Hong Kong and Mira Place 2. The Group plans to relocate the existing approximately 60,000 square feet of dining and banquet facilities from The Mira Hong Kong to the New Hotel cum Commercial Complex, thereby increasing the total retail space of Mira Place 2 by over 50%. At the same time, the total retail space of Mira Place 1 and 2 will increase to approximately 530,000 square feet, further enhancing the retail clustering effect, attracting more foot traffic and extending the shoppers' dwell time. This will, on the one hand, provide a more attractive shopping environment

9

for consumers, thereby enhancing values of the tenants, and, on the other hand, bring synergistic benefits to the Group's hotel and property rental businesses. The redevelopment plan also provides conditions for the refurbishment of the guestrooms and facilities of The Mira Hong Kong, further solidifying its status as a five-star hotel.

If the above project is approved at the Extraordinary General Meeting to be held on 31 March 2025 (Monday), the New Hotel cum Commercial Complex, upon completion, will help the Group to attract more high-end patrons and achieve a higher average room rate of the hotels, bringing synergistic benefits and generating higher returns for the Group's shopping malls and office building business, hence contributing to its long-term development in the future.

Looking to the broader macro environment, the implementation and completion of various national policies and infrastructure projects in Hong Kong are expected to create new opportunities for tourism and business activities. For instance, the expansion of the number of Mainland cities under the Individual Visit Scheme (''IVS'') to 59 and the implementation of the ''multiple-entry IVS'' policy in Shenzhen are anticipated to bring substantial tourist spending to Hong Kong. The ''Belt and Road'' initiative also presents opportunities for Hong Kong to develop its Islamic financial market and attract high-end business travelers from the Middle East, injecting fresh impetus into the local economy. In terms of transportation infrastructure, the commissioning of the third runway at Hong Kong International Airport will increase the air capacity significantly, while the commencement of service of the access road between Shenzhen Airport and Shenzhen Bay Port will facilitate travel for Mainland visitors to Hong Kong via Shenzhen Airport, enabling them to reach The Mira Hong Kong in Tsim Sha Tsui in approximately 80 minutes. Other projects, such as the expansion of the Hong Kong Convention and Exhibition Centre in Wan Chai North, the completion of the Kai Tak Sports Park, and the implementation of the ''Southbound Travel for Guangdong Vehicles'' scheme, will also attract more high-end business and leisure travelers, further energizing Hong Kong's economy.

To seize these opportunities, we will continue to introduce diversified products to meet the needs of travelers and implement various asset enhancement programs to further improve our hospitality capacity and customer experience. On the operational front, we will maintain cost control measures, such as planning to set up an office in Shenzhen and relocating some of the back-office supporting processes there to reduce costs. We will also utilize technology and optimize operational processes to ensure proper use of resources and enhance overall operational efficiency.

10