HK&S HOTELS(00045)2024-03-28 12:23Financial Performance - Total revenue for 2023 reached HKD 8,703 million, an increase of 89% compared to the previous year[14]. - Operating profit before interest, tax, depreciation, and amortization (EBITDA) was HKD 1,098 million, up 175% from HKD 399 million in 2022[14]. - Net profit attributable to shareholders was HKD 146 million, a significant recovery from a loss of HKD 488 million in 2022[14]. - The cash interest coverage ratio improved to 1.3x, a 57% increase from 0.8x in the previous year[14]. - Total assets increased by 2% to HKD 57,869 million, while audited net assets attributable to shareholders rose by 1% to HKD 36,279 million[14]. - The group reported a net cash inflow of HKD 150 million for the year, with cash and cash equivalents at HKD 720 million as of December 31, 2023[19]. - The group's basic earnings attributable to shareholders for the year ended December 31, 2023, were HKD 146 million, with non-operating and non-recurring items impacting earnings negatively by HKD 180 million[23]. - The group’s retained earnings as of December 31, 2023, amounted to HKD 30,478 million, reflecting a strong financial position[24]. - The group reported a significant rebound in business for 2023, driven by the reopening of borders in the Greater China region in February 2023[37]. - The company achieved a net gain of HKD 186 million from the revaluation of investment properties, compared to a net loss of HKD 152 million in the previous year[41]. Revenue Segments - Total revenue from the hotel segment increased by 41% to HKD 4,765 million, driven by recovery from the pandemic, except for the Beverly Hills Peninsula Hotel which saw a 4% revenue decline due to local strikes[17]. - The commercial property segment's revenue surged by 339% to HKD 3,110 million, primarily due to the sale of 10 luxury residential apartments in London, contributing HKD 2,298 million[17]. - The club and services segment reported a 60% revenue increase to HKD 828 million, mainly from the Peak Tram, which underwent a major upgrade completed in August 2022[17]. - The Hong Kong Peninsula Hotel reported a revenue increase of 51% year-on-year, reaching HKD 1,039 million[52]. - The Wangfu Peninsula Hotel achieved a revenue of RMB 298 million, with a 71% increase in occupancy rate and a 287% increase in average room rate[58]. - The Tokyo Peninsula Hotel generated revenue of JPY 13.35 billion, with a 78% increase in occupancy rate and an 89% increase in average room revenue[62]. Sustainability Initiatives - The group aims to achieve EarthCheck certification for its ten Peninsula hotels, reflecting its commitment to sustainability[15]. - Carbon emissions density and energy density decreased by 41% and 20% respectively compared to the 2010 baseline, indicating progress in sustainability efforts[15]. - The group allocated HKD 33 million as donations to support victims of the earthquake in Turkey, impacting the financial results for 2023[14]. - The company is committed to reducing greenhouse gas emissions and improving water efficiency as part of its "2030 Vision" sustainability strategy[143]. - The company has joined various global initiatives, including the Global Tourism Plastics Initiative and the Responsible Luxury Initiative, to address sustainability issues[143]. New Developments and Openings - The Peninsula Hotels opened two new properties in 2023, with the London Peninsula opening in February and the Istanbul Peninsula in September, marking a significant milestone for the company[31]. - The London Peninsula Hotel opened for trial operations on September 12, 2023, with 10 rooms initially available, expanding to 170 rooms by the end of December 2023[69]. - The Istanbul Peninsula Hotel opened with 23 rooms in February 2023, expanding to 80 rooms by March and reaching full capacity of 177 rooms by August 1, 2023[79]. - The company is undergoing significant renovations at the New York Peninsula Hotel, enhancing the lobby, rooftop bar, and public areas to improve asset value[32]. - The company is actively managing risks related to labor shortages, inflation, energy costs, and geopolitical uncertainties, with a focus on cybersecurity threats and climate change risks[31]. Awards and Recognition - The company received the "Best of Hong Kong SAR" award at the 37th ARC Annual Report Awards for its 2022 annual report, marking the second consecutive year of this honor[12]. - The Peninsula Hotel ranked sixth in the "World's Best Hotels" category by Condé Nast Traveller, being the only hotel from Asia in the top ten[56]. - The Peninsula Hotel in Shanghai was recognized as one of the Top 10 Hotels in China by Condé Nast Traveler, ranking 3rd among the World's Best Hotels[146]. - The Istanbul Peninsula Hotel was awarded 5th place in the 2023 World's Best Luxury Hotels by Luxury Travel Intelligence[148]. - The company achieved a Gold certification from EarthCheck for its commitment to sustainability across its properties[147]. Corporate Governance and Leadership - The board of directors has undergone significant changes, with new appointments and retirements, including the promotion of Liao Yijing to Executive Director and Chief Governance Officer in August 2023[32]. - The company is committed to enhancing corporate governance and maintaining high levels of transparency and accountability to gain the trust of shareholders and stakeholders[151]. - The governance framework is central to the company's corporate culture, aligning with its goals and values of integrity, responsibility, and transparency[153]. - The company is actively identifying climate-related risks and opportunities as part of its commitment to corporate responsibility and sustainable development[154]. - The leadership team includes experienced members with extensive backgrounds in various industries, enhancing the company's governance[164][169]. Employee Engagement and Development - The group employed 7,695 full-time staff as of December 31, 2023[46]. - The global employee experience survey participation rate reached a record high of 92%, with an engagement score of 78%, exceeding the global industry average by 5%[45]. - The company launched a new employee development program, with 19 global candidates completing the third learning unit in 2023 and set to complete the final unit in 2024[141]. - The "WorkPlace 2025" initiative aims to modernize the workplace and create a more meaningful work environment for employees[48]. - The company is actively recruiting talent in key markets such as China, Switzerland, and the United States, with campus visits and informational sessions[141].