Peninsula Hotels Interim Dent by Property Revaluation
August 10 , 2016
The HongKong and Shanghai Hotels(HSH Group), owner of the Peninsula Hotels, said its first half pretax earnings nearly unchanged if including the effect its Beijing and Chicago hotels partially closed for renovations had on its operation.
The company says its underlying profit 4% lower than the same period last year after Beijing and Chicago units under partial renovation. If including the earnings disruption from the partial closures of the Peninsula Beijing and The Peninsula Chicago for extensive renovations, its underlying profit attributable to shareholders would be HKD152 million, 50% lower than HKD265million of the same time period a year ago.
If including the property revaluation, net profit attributable to shareholders decrease to HKD198 million from HKD477 million. The revaluation of investment properties dropped to HKD54 million as compared to HKD236 million in the same period last year.
Revenue stayed at HKD2.61billion, almost unchanged from HKD2.69billion of a year ago. EBITA in the first amounted to HKD 525 million when compared with HKD642 million a year ago. The company board of directors recommended interim dividend of 4 HK cents per share, company's gearing remained low at 10%.
"The first six months of 2016 have been challenging", company chief executive offier Clement Kwok said, "Hong Kong, which is the largest geographic contributor to our group, has been impacted by the well-publicised declines in tourism and high-end retail spending and a softening in the high-end residential market"
"Generally the outlook for our businesses remains challenging for the remainder of the year and we are therefore focused on cost containment and managing the margins of our operations", said Kwok.
The company has its largest new project under development the Peninsula London, while the Chicago unit renovation will be done in August, poised for new opening.
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