HK&S HOTELS(00045)2023-08-03 04:05Financial Performance - The company's consolidated revenue for the six months ended June 30, 2023, increased by 47% to HKD 2,445 million, compared to HKD 1,662 million in 2022[3]. - The operating profit before interest, tax, depreciation, and amortization rose by 357% to HKD 498 million, up from HKD 109 million in the previous year[4]. - Basic earnings attributable to shareholders were HKD 25 million, a significant recovery from a loss of HKD 254 million in 2022[4]. - The total assets of the company as of June 30, 2023, were HKD 58,469 million, reflecting a 3% increase from HKD 56,581 million[5]. - The group reported a 47% increase in total revenue to HKD 2.7 billion for the first half of 2023, reflecting a strong recovery from the pandemic[8]. - The group recorded a basic profit of HKD 25 million, a significant improvement from a basic loss of HKD 254 million in the first half of 2022[8]. - The group's total revenue increased by 47% to HKD 2,445 million for the six months ended June 30, 2023, compared to HKD 1,662 million in the same period of 2022[51]. - The hotel division revenue rose by 53% to HKD 2,114 million, driven by the recovery of cross-border travel in Hong Kong and Tokyo[52]. Debt and Financial Stability - The net debt to total assets ratio stood at 28%, indicating a stable financial position[4]. - The group’s net debt to total asset ratio is currently at 28%, which is considered manageable given the expected revenue from the sale of London Peninsula residential apartments[9]. - The company had undrawn credit facilities of HKD 2.6 billion and cash and bank balances of HKD 623 million, totaling available funds of HKD 3.2 billion[44]. - The company's net debt (excluding lease liabilities) increased to HKD 163 billion as of June 30, 2023, up from HKD 146 billion as of December 31, 2022[73]. - The company maintained a robust net debt to total assets ratio of 28% as of June 30, 2023, compared to 26% at the end of 2022[73]. Operational Developments - The Peninsula Istanbul hotel commenced trial operations on February 14, 2023, and is expected to become a landmark in Istanbul[4]. - The London Peninsula hotel is set to begin trial operations on September 12, 2023, with full completion expected by the end of 2023[4]. - The Peninsula Istanbul hotel commenced operations on February 14, 2023, with 100% ownership held by the company[111]. - The London Peninsula Hotel project budget has increased to GBP 1.02 billion due to delays and design issues, with trial operations expected to start on September 12, 2023[35]. Revenue from Hotel Operations - The Hong Kong Peninsula Hotel reported revenue of HKD 472 million, a 72% increase year-on-year, with an occupancy rate increase of 24 percentage points and an average room rate increase of 76%[12]. - The Shanghai Peninsula Hotel achieved revenue of RMB 184 million, up 98% year-on-year, with occupancy rate increasing by 38 percentage points and average room revenue rising by 244%[14]. - The Tokyo Peninsula Hotel generated revenue of JPY 6.28 billion, a 129% increase year-on-year, with occupancy rate up by 16 percentage points and average room revenue increasing by 251%[17]. - The Bangkok Peninsula Hotel's revenue surged by 152% year-on-year to HKD 101 million, with a significant increase in occupancy and average room rates[11]. - The Peninsula Manila achieved revenue of 752 million PHP, a 97% increase, with occupancy rate up by 21 percentage points and average room revenue increasing by 103% compared to the previous year[20]. Challenges and Market Conditions - The group continues to face challenges with labor shortages, particularly in the US, Japan, and Europe, affecting operational capacity[6]. - The group remains focused on long-term growth and maintaining high-quality asset management, aiming to create substantial returns for shareholders[9]. - The company continues to face challenges in staffing, particularly in the New York and Chicago locations, impacting service delivery and operational capacity[21][22]. Community Engagement and Sustainability - The company continues to collaborate with local communities and charities, supporting initiatives for the homeless and underprivileged in Hong Kong[13]. - The group is implementing the "Vision 2030" sustainability strategy, focusing on enhancing guest experience, employee development, and community prosperity[39]. - The group is participating in the WTTC's climate action task force to help develop carbon reduction action plans for the travel and hotel industry[40]. Future Outlook - The overall outlook for the second half of the year remains positive, with expectations of continued growth in hotel performance across various locations[18]. - The company plans significant renovations for the New York Peninsula Hotel in early 2024, including updates to the lobby, front desk, guest rooms, and public areas[21]. - The company plans to continue expanding its investment properties and enhancing operational efficiency to drive future growth[79].