Performance | Major Hotel Turned Profit of 320 Million Last Year, No Dividend Distribution

The Peninsula Hotels (00045) announced that for the fiscal year ending December 2025, the company turned a profit, recording a net profit attributable to shareholders of HKD 320 million, with earnings per share of HKD 0.19. No dividend was declared. In the same period last year, a loss of HKD 943 million was recorded.

Last year, revenue was HKD 7.978 billion, a 22.47% decrease year-on-year; basic earnings attributable to shareholders were HKD 105 million, compared to a basic loss of HKD 176 million in 2024.

In 2025, the group’s Peninsula Hotels division showed steady and positive overall business performance worldwide. Benefiting from the recovery in inbound tourism and China’s expanded visa-free travel policies, the Greater China region maintained stable performance. The three Peninsula hotels in the region achieved excellent results in both room and banquet services, but due to consumers becoming more cautious with spending, the restaurant business performed slightly below expectations.

The group expects 2026 to be a year of steady progress. CEO Hu Weicheng stated that looking ahead, management remains cautiously optimistic. The demand for luxury travel in several key markets continues to recover. Although business environments vary across regions, initial signs indicate that authentic, personalized, and culturally rich luxury hotel services remain highly favored.

He pointed out that ongoing geopolitical tensions and the slower recovery of long-haul travel are expected to cause uneven market demand in Greater China in early 2026. The long-haul leisure travel market in Hong Kong is improving, and more major events are planned, which should benefit the area. However, competition from local consumers, especially from Shenzhen and other nearby regions, is expected to persist. Shanghai, with its strong base of room revenue and brand recognition, is expected to maintain stable local business and leisure operations. The Wangfujing Peninsula Hotel may still face challenges from a weak international market environment, but its solid diplomatic and arts and culture positioning is expected to remain a unique advantage.

Within the group’s overall business portfolio, the focus will continue to be on profit growth, emphasizing rent control, operational efficiency, and highlighting the unique positioning of each property. Investment plans for 2026 include upgrading facilities at flagship properties, digital transformation, and sustainability initiatives.

Given the stable demand for core residential and retail assets, strong traveler interest in landmark locations like The Peak, and the continued growth of retail and experiential fashion lifestyle platforms, the overall performance of the commercial property portfolio is expected to remain resilient.