THE HONGKONG AND SHANGHAI HOTELS, LIMITED ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020
Key highlights |
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THE HONGKONG AND SHANGHAI HOTELS, LIMITED ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020
Key highlights |
Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2021-03-22
- Results severely impacted by COVID-19, with several of our hotel properties closed for prolonged periods this year.
- The group’s consolidated revenue for the year decreased by 54% to HK$2,710 million (2019: HK$5,874 million).
- With stringent cost reduction measures, the group managed to reduce its operating costs by 38% to HK$2,771 million (2019: HK$4,484 million).
- Due to the efforts to contain costs and government subsidies received, the group was able to incur only a modest EBITDA loss of HK$61 million for the year (2019; EBITDA gain of HK$1,390 million). The underlying loss was HK$864 million (2019: underlying profit of HK$480 million).
- Underlying loss per share amounted to HK$0.53 (2019: underlying earnings per share HK$0.30).
- Given the current difficult environment and adverse financial results for 2020, the Board felt it was prudent not to declare a final dividend.
- The loss attributable to shareholders includes a property valuation deficit of HK$732 million and impairment provisions of HK$329 million relating to The Peninsula Istanbul and The Peninsula Manila.
- Construction of The Peninsula London, The Peninsula Istanbul and The Peninsula Yangon has been delayed due to COVID-related disruption of the construction workforce and supply chains. Despite COVID delays, we continue to make progress and The Peninsula London and The Peninsula Istanbul are expected to open in 2022. In Myanmar, political developments on 1 February 2021 led to the military declaring a state of emergency for a period of one year. We have noted the recent violence and chaos with great concern and we continue to evaluate both the immediate actions required and the longer-term decisions that need to be made in respect of this project.
- The Group has sufficient committed facilities to cover all of its capital commitments (including the new hotel projects) as well as provide a liquidity cover of well over two years at current cash burn levels.
- Following a restructuring of the Thai joint venture arrangements, the group assumed full ownership over The Peninsula Bangkok and its surrounding land and disposed of the Thai Country Club from October 2020.
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