【Peninsula Hotel Parent Company】Major Hotel Posts Year-on-Year Profit of 320 Million Yuan, No Dividend Payout

Peninsula Hotels’ parent company, Great Hotels (00045), announced that benefiting from improved operational performance, it will record a profit of HKD 320 million for the full year of 2025, compared to a loss of HKD 940 million in the same period last year. Basic profit is HKD 105 million, versus a loss of HKD 180 million in the same period last year. Great Hotels will not pay dividends.

Great Hotels stated that the improvement in operational performance is due to the booming hotel business, notably the renovated New York Peninsula Hotel, which achieved particularly remarkable results. Tokyo Peninsula Hotel and London Peninsula Hotel also showed strong performance.

Last year’s revenue was HKD 7.98 billion, down 22% year-on-year. Excluding gains from the sale of London Peninsula residential apartments, operating revenue was HKD 7.58 billion, up 11% year-on-year. During the period, the average room rent in Greater China was HKD 4,053, down 4.8% year-on-year, but the average revenue per available room was HKD 2,644, up 8% year-on-year. The occupancy rate also increased by 7 percentage points to 65%.

Benefiting from the recovery in inbound tourism and China’s expanded visa-free travel policies, the Greater China region’s business remained stable. Consumers in the region remain sensitive to luxury spending, but international long-haul travelers (especially from the Middle East and Russia) helped drive revenue growth. The three Peninsula Hotels in the region achieved excellent results in room and banquet services, but due to cautious consumer spending, the restaurant business performed slightly weaker. In Hong Kong, the Peninsula Hotel’s restaurant performance continued to weaken due to competition from mainland China’s Greater Bay Area consumers and tighter local spending. Despite the sluggish luxury retail market, the overall performance of its retail malls remains relatively stable.

CEO Hu Weicheng stated that 2025 will undoubtedly be an important year for the company’s active transformation. The group’s major investment cycle has largely been completed, with the opening of the London Peninsula Hotel and Istanbul Peninsula Hotel, and operations gradually stabilizing. Therefore, management’s focus is shifting from project delivery and stable operations to optimizing performance and creating value.

With new leadership in place, the group has launched a comprehensive strategic review to ensure that it continues to adapt to the rapidly changing operating environment, maintaining competitiveness and financial flexibility.