Group 1 - The core viewpoint of the article is that the New World Group's brand, Tongpai, is launching a franchise program after seven years of establishment, reflecting the growing potential of the mid-to-high-end hotel market in China [1][4][14] - Tongpai Hotel Management Company, established in 2018, is a member of the Chow Tai Fook Group and aims to develop the Tongpai brand in China, transitioning from the previously underperforming Bellet brand [1][2][3] - The brand emphasizes a community concept and targets the millennial consumer group, focusing on a blend of trendy hotels, shared offices, and serviced apartments [3][8] Group 2 - The article discusses the challenges faced by Hong Kong-based hotel brands in the mid-to-high-end market, highlighting the slow expansion of brands like Shangri-La's Kerry and Jen [5][6][7] - The mid-to-high-end hotel market in China is experiencing rapid growth, driven by the rise of the middle class, but Hong Kong brands have been slow to adapt and expand [11][12] - The article notes that Hong Kong hotel brands are leveraging their real estate assets to enhance their market presence, with a focus on high-quality locations [12][13] Group 3 - Tongpai's strategy includes a partnership with Ctrip's Rezen Group to enhance its digital capabilities and accelerate brand development [9][10] - The brand has opened 10 hotels across various cities, maintaining a growth rate of 1-2 openings per year, indicating a cautious approach to expansion [9][10] - The article highlights the importance of design and local cultural integration for Hong Kong hotel brands to differentiate themselves in a competitive market [13][14]

Hotel Portfolio - The hotel portfolio includes three properties: The Langham, Hong Kong (498 rooms), Cordis, Hong Kong (669 rooms), and Eaton HK (465 rooms) [11][16][21][22] - The Langham, Hong Kong is located in Tsim Sha Tsui, a prime shopping and cultural area, enhancing its appeal to luxury travelers [8][9] - Cordis, Hong Kong is the only large luxury hotel in the Mong Kok area, strategically positioned near popular markets and shopping centers [13][14] - Eaton HK has been recently renovated and features modern amenities including a rooftop pool, yoga room, and diverse dining options [18][19] - The group is managed by Langham Hospitality Group, which operates 28 hotels across various regions including Asia, Europe, and North America [22] - The hotels are strategically located near major transportation hubs, facilitating easy access for guests [5] - The Langham brand emphasizes luxury and unique experiences, while Cordis focuses on high-end service and modern design [23][25] - The hotels cater to both leisure and business travelers, capitalizing on their prime locations and luxury offerings [8][13] Financial Performance - Hotel portfolio revenue decreased by 1.9% to HKD 1,587.7 million in 2024 from HKD 1,618.8 million in 2023 [44] - Total rental income after service fees dropped by 21.8% to HKD 401.8 million compared to HKD 514.0 million in the previous year [44] - Profit attributable to unit holders fell by 77.5% to HKD 50.5 million from HKD 224.1 million in 2023 [44] - Distributable income decreased by 62.0% to HKD 113.0 million from HKD 297.6 million in the prior year [44] - The final distribution per unit is proposed at HKD 0.016, with a distribution yield of 3.4% based on the market price of HKD 0.475 per unit as of December 31, 2024 [39] - Total value of the hotel portfolio increased to HKD 15,895 million as of December 31, 2024, up from HKD 15,725 million [44] - Net asset value per unit remained stable at HKD 2.77 as of December 31, 2024, unchanged from the previous year [44] - Debt ratio slightly improved to 38.2% from 38.3% in 2023 [44] - No interim distribution was declared for the six months ended June 30, 2024 [44] Visitor Trends - In 2024, Hong Kong welcomed 44.5 million visitors, a 30.9% increase from the previous year, but still below pre-pandemic levels of 65.1 million in 2018 [47] - Visitors from Southeast Asia increased by 40.9%, long-haul travelers rose by 53.2%, and travelers from mainland China grew by 27.2%, with mainland visitors accounting for 67.4% of overnight stays [49] Room and Occupancy Rates - The average room rate at The Langham, Hong Kong dropped nearly 10% due to intense competition, while overall hotel occupancy increased by 2.8 percentage points to 90.9% [50] - The average room revenue for The Langham Hotel in Hong Kong fell by 7.4% to HKD 1,748 per night, driven by a 9.9% decline in average room rates [79] - The occupancy rate for The Langham Hotel increased by 2.4 percentage points to 89.3% in 2024 [79] - The average room revenue for The Kowloon Hotel grew by 2.0% to HKD 1,500 per night, with an occupancy rate of 92.6%, up 2.8 percentage points [80] - The average room revenue for The Eaton Hotel rose by 3.8% to HKD 1,003 per night, with an occupancy rate of 90.0%, an increase of 3.0 percentage points [81] Revenue from Dining and Other Services - Total revenue from the restaurant business decreased by 3.6%, attributed to changing consumer spending patterns and fewer wedding events [51] - The overall dining revenue for The Langham Hotel decreased by 8.8%, attributed to changing consumer patterns and the closure of a high-end restaurant [79] - The overall dining revenue for The Eaton Hotel declined by 5.1%, impacted by reduced banquet activities despite increased patronage at its Michelin-starred restaurant [81] Sustainability Initiatives - The company is committed to achieving net-zero emissions, with ongoing projects contributing significantly to this goal [118] - The "Oyster Shell Upcycling Programme" successfully converted over 12 tons of discarded oyster shells into sustainable raw materials for cement products [118] - The company is preparing to launch a new environmental, social, and governance data management platform to enhance monitoring and tracking of ESG data [117] - The company has engaged independent auditors to verify the credibility of its sustainability disclosures, reflecting increasing stakeholder expectations [117] - Climate risk assessments have been conducted for the hotels to identify necessary mitigation measures and potential opportunities [118] - The company continues to balance successful, people-centric business activities with effective climate action measures [117] - The hotels achieved EarthCheck Master certification in 2024, recognizing over 15 years of commitment to sustainability, making it the first hotel in Hong Kong and North Asia to receive this honor [146] Employee Development and Safety - The average employee training hours amounted to 61.2 hours, with a total of over 75,000 training hours completed [168] - The company has implemented a comprehensive development plan, including the Leadership Trainee Program (LLTP) and the APEX program for internal leadership training, which have successfully promoted employee retention and career development since their launch [167] - Lost time injury frequency is projected to decrease from 34.8 in 2023 to 25.7 in 2024, indicating improved safety performance [172] - Accident rate is expected to decline from 11.3 in 2023 to 8.8 in 2024, reflecting enhanced workplace safety measures [173] Community Engagement - The hotels organized over 180 community activities, contributing more than 1,900 hours of volunteer service [194] - The Hong Kong East Hotel provided free nutritious meals to 40-50 individuals weekly through partnerships with More Good and the Hong Kong Justice Centre, supporting refugees and the elderly community [200] - The Hong Kong East Hotel also implemented a "Refugee Employment Program" to provide job opportunities for eligible refugees, raising public awareness of the challenges faced by the refugee community in Hong Kong [200] - The hotels' community investment strategy emphasizes encouraging colleagues to engage in volunteer activities, which is a core element of the "CONNECT" culture [194]

Financial Performance - The hotel portfolio revenue for 2024 was HKD 1,587.7 million, a decrease of 1.9% compared to HKD 1,618.8 million in 2023[3]. - Total rental income after service fees dropped by 21.8% to HKD 401.8 million from HKD 514.0 million in the previous year[3]. - Profit attributable to shareholders decreased by 77.5% to HKD 50.5 million, down from HKD 224.1 million in 2023[3]. - The net property income for 2024 was HKD 381.0 million, a decline of 23.0% compared to the previous year[10]. - The total revenue for the group decreased by 7.7% in 2024 compared to 2023[32]. - Total distributable income for the year ended December 31, 2024, was HKD 113.0 million, down 62.0% from HKD 297.6 million in 2023[25]. - The pre-tax profit for 2024 was HKD 229,705,000, a decrease of 79.1% from HKD 1,099,842,000 in 2023[64]. - The total comprehensive income attributable to unit holders for the year was HKD 231,724,000, down 78.6% from HKD 1,080,319,000 in the previous year[64]. - The basic and diluted earnings per unit for 2024 were HKD 0.07, a decrease of 78.8% compared to HKD 0.33 in 2023[64]. - The total profit before tax amounted to HKD 1,099,842,000, with a net profit attributable to shareholders of HKD 1,080,319,000 for the year[86]. Revenue and Income Sources - The average room rate for the hotel portfolio decreased by 4.4%, resulting in a revenue per available room (RevPAR) decline of 1.4% to HKD 1,434[6]. - The average room revenue for The Langham Hotel decreased by 9.9% to HKD 1,957 per night, resulting in a decline in average revenue per available room (RevPAR) by 7.4% to HKD 1,748[30]. - The average room revenue for the Cordis Hotel increased by 2.0% to HKD 1,500 per night, with an occupancy rate of 92.6%, up 2.8 percentage points[33]. - The average room revenue for the Eaton Hotel increased by 3.8% to HKD 1,003 per night, with an occupancy rate of 90.0%, up 3.0 percentage points[34]. - The total revenue from the three hotels in Hong Kong reached HKD 595,167,000, with a breakdown of HKD 228,389,000 from Langham Hotel, HKD 243,840,000 from Cordis Hotel, and HKD 122,938,000 from Eaton Hotel[86]. - The total service fee income from the main lessee is HKD 79,412,000 for 2024, slightly down from HKD 81,202,000 in 2023[82]. - The company reported a decrease in revenue from major tenants to HKD 400,069,000 in 2024 from HKD 512,267,000 in 2023, representing over 10% of total revenue[90]. Costs and Expenses - The total financing cost increased by 30.4% to HKD 75.1 million, primarily due to the expiration of certain interest rate swap contracts[9]. - Total financing costs increased by 30.4% to HKD 322.2 million, primarily due to a significant decline of 91.9% in net interest income from interest rate swaps[19]. - The total administrative and other expenses were HKD 13,928,000, contributing to the overall financial performance[86]. - Administrative expenses increased to HKD 23,855,000 in 2024 from HKD 22,255,000 in 2023, reflecting an increase of about 7.2%[108]. Assets and Liabilities - The total outstanding borrowings as of December 31, 2024, amounted to HKD 6,204.6 million, an increase from HKD 6,059.1 million as of December 31, 2023[41]. - The total assets of the trust group were HKD 16,238.3 million as of December 31, 2024, compared to HKD 15,835.0 million as of December 31, 2023[42]. - The debt-to-asset ratio was 38.2% as of December 31, 2024, slightly down from 38.3% as of December 31, 2023[42]. - Non-current liabilities rose to HKD 6,648,753 thousand in 2024 from HKD 482,956 thousand in 2023, reflecting a significant increase of 1,276.5%[66]. - Total liabilities, including trade payables and accrued expenses, decreased from HKD 68,205,000 in 2023 to HKD 61,131,000 in 2024, a reduction of approximately 10.3%[105]. Market and Economic Conditions - The total number of visitors to Hong Kong in 2024 reached 44.5 million, a 30.9% increase year-on-year, but still below pre-pandemic levels[5]. - The average rental rates have not yet returned to 2018 levels, indicating ongoing challenges in the hotel industry[38]. - The Consumer Price Index (CPI) increased by 9% during the period, contributing to rising operational costs, particularly a 23% increase in frontline labor costs from 2018 to 2024[38]. - The geopolitical tensions and trade conflicts are expected to continue impacting the hotel and tourism sectors in Hong Kong through 2025[38]. Corporate Governance and Compliance - The company confirmed compliance with all applicable corporate governance codes and securities trading rules throughout the review year[54][55]. - The public float of the trust and company remains sufficient, with over 25% of the issued units held by the public[60]. - The company did not repurchase or redeem any units during the fiscal year ending December 31, 2024[56]. Future Outlook and Strategic Plans - The company plans to monitor interest rate trends closely and may consider converting some floating-rate bank debt to fixed-rate to mitigate interest rate risk[20]. - The group is currently assessing the detailed impact of the new Hong Kong Financial Reporting Standard No. 18 on its consolidated financial statements, which is expected to affect future disclosures[79].

Financial Performance - Hotel portfolio revenue for the first half of 2024 was HKD 772.9 million, representing a year-on-year increase of 7.2% compared to HKD 720.9 million in the first half of 2023[16]. - Total rental income after service fees decreased by 19.0% to HKD 191.1 million, down from HKD 235.8 million in the previous year[16]. - Profit attributable to unit holders, excluding changes in investment property and derivative financial instruments, fell by 95.4% to HKD 4.3 million from HKD 94.3 million[16]. - Distributable income decreased by 75.1% to HKD 34.0 million compared to HKD 136.8 million in the same period last year[16]. - Total revenue for the six months ended June 30, 2024, was HKD 191,166, a decrease of 18.9% from HKD 235,745 in the same period of 2023[83]. - Net property income for the same period was HKD 180,956, down 19.9% from HKD 225,954 year-over-year[83]. - The net profit after tax for the first half of 2024 was HKD 43.0 million, a significant decline of 93.2% from HKD 631.0 million in the same period last year[30]. - The total segment profit for the group was HKD 180,956,000 for the six months ended June 30, 2024, down from HKD 225,954,000 in the same period of 2023, reflecting a decrease of approximately 19.9%[134]. Rental and Income Details - Total rental income (before service fees) decreased by 15.7% year-on-year to HKD 229.0 million in the first half of 2024, with fixed rental income stable at HKD 111.9 million and variable rental income down 26.9% to HKD 116.2 million[21]. - The total rental income after deducting service fees was HKD 191.1 million, down 19.0% year-on-year[22]. - Total rental agreements include a fixed base rent of HKD 225.0 million per year and a floating rent based on 50% of total operating profit, reduced from the previous 70% threshold[59]. - Rental income from the main lessee, GE (LHIL) Lessee Limited, was HKD 111,885,000, slightly down from HKD 116,226,000 in the previous year, indicating a decline of about 2.9%[94]. - Total rental income from the main tenant decreased to 228,111 million HKD for the six months ended June 30, 2024, down from 270,509 million HKD in the prior period, a decline of approximately 15.66%[130]. Asset and Valuation - The total value of the hotel portfolio as of June 30, 2024, was HKD 15,725 million, slightly up from HKD 15,662 million at the end of 2023[16]. - The valuation of the hotel investment portfolio increased from HKD 15,662.0 million at the end of December 2023 to HKD 15,725.0 million by June 30, 2024[18]. - The fair value of investment properties (hotel portfolio) increased slightly by HKD 37.4 million, compared to a substantial increase of HKD 552.2 million in the previous year[28]. - The fair value of the Hong Kong Langham Hotel was HKD 5,420,000,000 as of June 30, 2024, compared to HKD 5,460,000,000 at the end of 2023, indicating a slight decrease[99]. - The fair value of the Hong Kong Cordis Hotel was HKD 6,750,000,000 as of June 30, 2024, up from HKD 6,660,000,000 at the end of 2023, reflecting an increase[99]. Debt and Financing - The debt ratio as of June 30, 2024, was 38.1%, a slight improvement from 38.3% at the end of 2023[16]. - The net bank loan repayment of HKD 257.9 million in December 2023 reduced the outstanding loan balance in the first half of 2024 compared to the same period in 2023, despite a 21.2% increase in interest expenses[18]. - The average annual interest rate on bank loans rose to 5.4% in the first half of 2024, an increase of 1.1 percentage points from the first half of 2023[18]. - Financing costs increased by 48.7% to HKD 162.8 million, up from HKD 109.5 million in the previous year, primarily due to a 21.2% rise in bank loan interest expenses[27]. - The group expects to refinance a bank financing amount of HKD 6,247,600,000, ensuring sufficient funds to meet its financial obligations[91]. Visitor and Market Trends - The number of visitors to Hong Kong in the first half of 2024 increased by 64% year-on-year, reaching 21 million, although overnight visitors were only 76% of the levels seen in 2018[17]. - The company anticipates an increase in business demand and visitor numbers, supported by high-quality operations and prime locations[19]. Corporate Governance and Compliance - The trust group has been compliant with all applicable corporate governance codes and has adopted some best practices as per the corporate governance code[53]. - The trust group is committed to maintaining high standards of corporate governance to enhance its image and create value for unit holders[50]. - The trust group is structured as a fixed unit investment trust, only allowed to invest in the securities and other interests of a single entity[51]. - The board of directors of the trust manager is required to consist of the same individuals who serve as directors of the company, ensuring alignment in governance[53]. - The independent non-executive directors will review the performance of the Eagle Point priority contract annually and disclose the results in the annual report[55]. Employee and Operational Insights - The total number of employees at the hotels remained stable compared to December 31, 2023, with competitive salary levels and performance-based bonuses[70]. - The trust group's governance structure includes a competitive compensation package for employees, including salary, bonuses, and retirement benefits[70]. - The company reported a decrease in accrued liabilities to HKD 22,687,000 from HKD 24,701,000, a reduction of 8.2%[116]. - The total compensation for directors and senior management was HKD 1,811,000 for the current period, compared to HKD 1,915,000 for the same period in 2023, reflecting a decrease of about 5.4%[136]. Share and Unit Information - The total number of issued units as of June 30, 2024, is 3,374,301,602, representing an increase of 55,432,596 units or 1.64% compared to December 31, 2023[64]. - The issued share capital as of June 30, 2024, was HKD 1,687,151, with a total of 3,374,301,602 shares issued[122]. - The company issued additional shares to cover hotel management fees, increasing the total number of shares issued[121]. Sustainability and Community Engagement - The trust group is committed to sustainable development through its CONNECT program, focusing on governance, employees, community, and environmental responsibility[71]. - The trust group emphasizes long-term value creation through sustainable practices that enhance community quality of life[71].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公布的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公布全部或任何部份內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 LANGHAM HOSPITALITY INVESTMENTS 朗廷酒店投資 （根據香港法例按日期為二零一三年五月八日之信託契約組成， 其託管人為朗廷酒店管理人有限公司） 與 朗廷酒店投資有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1270） 2024 年中期業績公布 朗廷酒店管理人有限公司（作為朗廷酒店投資（「本信託」）的託管人－經理（「託管人 －經理」））及朗廷酒店投資有限公司（「本公司」）之董事會（「董事會」）欣然宣布， 本信託及本公司連同本公司之附屬公司（「信託集團」）截至 2024 年 6 月 30 日止六個月 未經審核之綜合業績如下： 財務摘要 （除另有指明外，以百萬港元為單位） 2024 年上半年 2023 年上半年 變幅 酒店組合收入 772.9 720.9 7.2% 扣除服務費後的信託集團總租金收益 191.1 235.8 -19.0% 股份合訂單位持有人應佔溢利（撇除投 ...

Financial Performance - Fixed rental income remained stable at HKD 225.0 million, while variable rental income increased significantly by 147.5% to HKD 368.5 million, contributing to a total rental income growth of 54.8% to HKD 514.0 million[11]. - Net property income rose by 57.7% to HKD 494.7 million, driven by increased rental revenues and improved operational efficiency[13]. - The fair value of investment properties increased dramatically by 324.1% to HKD 926.3 million, reflecting strong market demand and property appreciation[15]. - The company reported a pre-tax profit of HKD 1,099.8 million, a substantial increase of 138.5% compared to the previous year[15]. - The net profit after tax for 2023 was HKD 1,080.3 million, significantly driven by an increase in the fair value of investment properties (hotel portfolio) by HKD 926.3 million, offset by a decrease of HKD 70.1 million from derivative financial instruments and financing costs of HKD 247.1 million[26]. - The total distributable income for the year ended December 31, 2023, was HKD 297.6 million, representing a year-on-year growth of 56.2%[28]. - Profit attributable to unit holders, excluding fair value changes of investment properties and derivative financial instruments, rose to HKD 224.1 million, an 89.8% increase from HKD 118.1 million[68]. - The company recorded a net profit of HKD 224.1 million in 2023, representing a year-on-year increase of 89.8%[97]. - The profit attributable to unit holders increased by 157.5% to HKD 1,080.3 million in 2023 compared to HKD 419.6 million in 2022[89]. - Total revenue for 2023 grew by 87.7% to HKD 1,618.8 million, with significant increases in room revenue (61.6%) and food and beverage revenue (86.2%) across the hotels[90][91]. Revenue Sources - Total revenue from hotel dining increased by 76.8% to HKD 654.8 million, with banquet services showing a remarkable growth of over 500%[19]. - Hotel portfolio revenue increased to HKD 1,618.8 million, a 66.8% rise from HKD 970.6 million in 2022[68]. - Total rental income after service fees for the trust group reached HKD 514.0 million, up 54.8% from HKD 332.1 million[68]. - Total revenue for the hotel portfolio increased by 66.8% compared to 2022, driven by improvements in RevPAR and dining business[69]. Operational Metrics - The average daily available rooms remained stable at 1,630, with an occupancy rate increase to 88.1%, up 21.7 percentage points from the previous year[18]. - Average room rates increased by 21.9% to HKD 1,650, while average revenue per available room surged by 61.7% to HKD 1,454[18]. - The occupancy rate of the Hong Kong Eaton Hotel increased from 73.4% in 2022 to 87.0% in 2023, with the average room rate rising by 21.8% to HKD 1,110 per night, leading to a 44.4% year-on-year increase in average revenue per available room[32]. - The hotel portfolio recorded an average revenue per available room (RevPAR) growth of 61.7% year-on-year in 2023[69]. Financing and Costs - The company’s financing costs rose by 70.3% to HKD 247.1 million, influenced by increased borrowing and interest rates[15]. - The average interest rate on bank borrowings increased to 5.0% in 2023, up from 2.0% in 2022, leading to a 70.3% rise in financing costs to HKD 247.1 million[69]. - Financing costs increased by 70.3% to HKD 247.1 million, primarily due to a 142.1% rise in bank loan interest expenses[96]. - The debt ratio improved to 38.3% at the end of 2023, down from 42.0% at the end of 2022, following a reduction in outstanding bank loans by HKD 257.9 million[93]. Corporate Governance and Management - The board of directors emphasizes good corporate governance practices as key to long-term success in a changing business environment[133]. - The trust group has completed a review of its distribution policy, retaining full discretion to update or modify it as necessary[123]. - The independent assessment of directors' independence is crucial for objective judgment in overseeing the trust and company operations[107]. - The trust group has established a risk management framework to identify, analyze, assess, and report significant risks across various operational areas[147]. - The company has established governance measures to address potential conflicts of interest between the trust group and Eagle Group, ensuring independent operations[186]. Market and Economic Conditions - The number of visitors to Hong Kong reached approximately 34.0 million in 2023, a significant increase from 0.6 million in 2022, indicating a strong recovery in tourism[21]. - Despite the recovery in tourism, the overall economic environment in Hong Kong remains challenging, with retail and tourism sectors recovering slower than expected[140]. - The trust group has adopted proactive asset management strategies to mitigate risks, including regular performance reviews and meetings with hotel management[140]. Future Outlook and Strategies - The company plans to monitor interest rate trends closely and may convert some floating-rate bank debt to fixed rates when appropriate[72]. - The trust group is committed to enhancing shareholder value through its distribution policy, which is subject to the trust deed's provisions[121]. - The trust group is committed to developing various sustainability strategies to address climate change risks, which include rising sea levels and extreme weather events[151]. - The trust group has obtained additional revolving bank credit to address any unforeseen renovation projects[156]. Employee and Operational Structure - The trust group increased its employee count by 112 compared to December 31, 2022, reaching a total of 75% male and 25% female employees[128]. - The trust group employs four professionals to maintain operations effectively, with administrative support provided by Eagle Group on a cost-sharing basis[129]. Shareholder Information - As of December 31, 2023, the total number of issued units was 3,318,869,006, with 45,385,927 new units issued during the year, representing 1.37% of the total[164]. - The company holds a total of 2,330,678,928 shares, with major shareholders including Dr. Lo Ka Shui, who has a personal interest of 64,912,835 shares (8.68%) and a company interest of 95,948,364 shares (12.83%) [174]. - The company has a total of 4,166,747,905 fund units, with Dr. Lo Ka Shui holding 69.29% of the issued fund units [180].

Financial Performance - Hotel portfolio revenue increased by 66.7% to HKD 720.9 million in the first half of 2023 compared to HKD 432.4 million in the same period of 2022[9]. - Distributable income rose by 9.8% to HKD 136.8 million from HKD 124.6 million year-on-year[10]. - The profit attributable to shareholders for the first half of 2023 was HKD 631.0 million, representing a 3.4% increase compared to HKD 610.4 million in the same period of 2022[23]. - Total revenue for the first half of 2023 increased by 95.6% year-on-year[26]. - Net property income for the trust group was HKD 226.0 million, an increase of 31.5% compared to the previous year[31]. - Total rental income increased by 30.2% to HKD 235.8 million, with fixed rental income remaining stable at HKD 111.6 million and variable rental income from retail stores rising by 74.8% to HKD 158.9 million[13][17]. - Total rental income (before service fees) for the first half of 2023 was HKD 271.5 million, representing a year-on-year increase of 33.3%[173]. - Net rental income (after service fees) for the first half of 2023 was HKD 235.8 million, reflecting a year-on-year growth of 30.2%[173]. - The net profit attributable to unit holders, excluding fair value changes of investment properties and derivative financial instruments, was HKD 94.3 million, representing a 7.5% increase year-on-year[184]. - The total operating profit before global marketing expenses for the hotel portfolio reached HKD 227.0 million, up 74.7% from the previous year[183]. Hotel Operations - Average revenue per available room (RevPAR) grew by 25.9% year-on-year, with specific increases of 48.9% for The Langham and 21.6% for Cordis hotels, while Eaton Hotel saw a slight decline of 1.0%[12]. - The average daily available rooms for the hotel portfolio in the first half of 2023 was 1,630, with an occupancy rate of 86.5%, an increase of 14.1 percentage points compared to the same period last year[191]. - Restaurant revenue grew 2.1 times year-on-year in the first half of 2023, attributed to the lifting of social distancing policies[169]. - Food and beverage revenue increased by 3.2 times year-on-year, partly due to strong growth in the Tang Court restaurant, which maintained its Michelin three-star status[193]. - Average interest rate on bank borrowings increased to 4.3% in the first half of 2023, compared to 1.1% in the same period of 2022, leading to a 90.8% increase in financing costs to HKD 109.5 million[170]. Investment and Valuation - The valuation of the hotel investment portfolio rose from HKD 14,685.0 million at the end of 2022 to HKD 15,265.0 million by June 30, 2023[14]. - The fair value increase of investment properties amounted to HKD 552.2 million, offset by a decrease of HKD 15.5 million from derivative financial instruments[35]. - The total fair value of investment properties increased to HKD 552.2 million during the reporting period[184]. Debt and Financing - Financing costs increased by 90.8% to HKD 109.5 million, primarily due to a significant rise in interest expenses[19]. - The overall debt ratio improved to 40.5% from 42.0% at the end of 2022[14]. - Interest expenses rose to HKD 134.3 million, a significant increase of 291.5% year-on-year due to rising Hong Kong Interbank Offered Rate (HIBOR) since July 2022[32]. - The trust group maintained a total outstanding debt of HKD 6,317.0 million as of June 30, 2023, unchanged from December 31, 2022[42]. - The nominal total amount of interest rate swap contracts for hedging floating rate loans was HKD 3,700.0 million, covering 58.6% of the outstanding borrowings[33]. Corporate Governance - The trust group has established various corporate governance measures to address potential conflicts of interest, ensuring the interests of independent unit holders are protected[72]. - The trust and the company have complied with all applicable governance codes and best practices during the six-month period ending June 30, 2023[77]. - The trust is structured as a fixed unit investment trust, only permitted to invest in the securities and other interests of a single entity[69]. - The board of directors of the trust manager must consist of the same individuals who serve as directors of the company, ensuring alignment in governance[77]. - The trust manager has no employees and does not pay any remuneration to its directors, which simplifies governance structures[77]. - The company has implemented specific corporate governance measures to oversee the execution of the Eagle's priority contract, including annual reviews by independent non-executive directors[88]. - The company is committed to ensuring compliance with the terms of the Eagle's priority contract through internal audit functions and oversight by the audit committee[87]. Future Outlook - The company anticipates ongoing challenges from the COVID-19 pandemic, geopolitical tensions, and high interest rates affecting the recovery of the hotel industry[15]. - The group anticipates stable business volume and will continue to address challenges in the overall macro environment[28]. - The trust group is committed to sustainable development, focusing on environmental, social, and governance responsibilities[110]. Unit Holdings - As of June 30, 2023, the total number of issued units was 3,289,330,011, reflecting an increase of 15,846,932 new units, or 0.48% compared to December 31, 2022[95]. - The company holds a total of 3,289,330,011 issued units as of June 30, 2023, with 2,304,229,933 units representing 70.05% ownership by Eagle Group[124][130]. - Dr. Lo Ka Shing is the beneficial owner of 31,584,000 units (0.96%) and has control over 2,304,229,933 units (70.05%) through Eagle Group[123][130]. - The company has a significant trust interest with 254,664,393 units (34.06%) held in discretionary trust[133]. - Eagle Group's indirect holdings include 2,157,195,433 units (65.58%) through LHIL Assets Holdings Limited as of June 30, 2023[125][136]. - The total number of issued units for the Crown Industrial Trust is 5,990,682,244, with Eagle Group owning 68.78%[135][134]. - The company reported a total of 64,932,835 units (8.68%) held by Dr. Lo Ka Shing as of June 30, 2023[133]. - The company has disclosed that 775,000 units are held as stock options[126]. - The total issued shares for Eagle Group as of June 30, 2023, is 747,723,345, with a 69.96% ownership stake[127][126]. - The company has a total of 95,928,364 units (12.83%) held by controlled companies[133]. - The company’s financial disclosures indicate no other individuals hold 5% or more of the issued units apart from those listed[130].

Financial Performance - Total revenue from the hotel portfolio increased by 66.7% to HKD 720.9 million in the first half of 2023, compared to HKD 432.4 million in the same period of 2022[6]. - Distributable income for the first half of 2023 was HKD 136.8 million, a 9.8% increase from HKD 124.6 million in the same period of 2022[6]. - The net profit attributable to shareholders for the six months ended June 30, 2023, was HKD 630,966,000, compared to HKD 610,394,000 for the same period in 2022, representing a growth of 1.9%[136]. - The pre-tax profit for the six months ended June 30, 2023, was HKD 650.9 million, compared to HKD 631.1 million for the same period in 2022[83]. - The total distributable income for the six months ended June 30, 2023, was HKD 136,792,000, an increase from HKD 124,601,000 in the previous year, reflecting a growth of 9.4%[136]. Hotel Operations - The average revenue per available room (RevPAR) increased by 25.9% year-on-year in the first half of 2023[22]. - The average occupancy rate for the overall hotel portfolio increased to 86.5% in H1 2023, up from 72.4% in H1 2022, with a 25.9% rise in average revenue per available room[49]. - The Langham Hotel in Hong Kong reported a significant increase in occupancy rate from 70.6% in H1 2022 to 84.5% in H1 2023, with an average room rate rising by 24.3% to HKD 2,044[46]. - The average daily room rate for the Hong Kong hotels was HKD 667 in the first half of 2023, with an occupancy rate of 88.4%[44]. - The average room rate for all hotels in Hong Kong reached HKD 1,299 in H1 2023, reflecting a 25.3% increase compared to H1 2022[56]. Rental Income - The total rental income (net of service fees) rose by 30.2% to HKD 235.8 million in the first half of 2023, up from HKD 181.1 million in the previous year[6]. - Fixed rental income from GE (LHIL) Lessee Limited was HKD 111.6 million, while variable rental income amounted to HKD 158.9 million in the first half of 2023[15]. - Total rental income for the Trust Group increased by 30.2% year-on-year to HKD 235.8 million in the first half of 2023, driven by a 74.8% increase in floating rental income[28]. Financial Position - The total value of the hotel portfolio increased to HKD 15,265.0 million as of June 30, 2023, from HKD 14,685.0 million at the end of December 2022[14]. - The debt ratio decreased to 40.5% as of June 30, 2023, down from 42.0% at the end of December 2022[14]. - As of June 30, 2023, the total assets of the trust group amounted to HKD 15,593.8 million, an increase from HKD 15,022.6 million as of December 31, 2022[65]. - The debt-to-asset ratio was 40.5% as of June 30, 2023, down from 42.0% as of December 31, 2022[65]. - The cash balance stood at HKD 246.6 million as of June 30, 2023, slightly up from HKD 245.1 million as of December 31, 2022[67]. Interest and Financing Costs - The average borrowing interest rate for the Trust Group Bank increased to 4.3% in the first half of 2023, compared to 1.1% in the same period of 2022, leading to a 90.8% year-on-year increase in financing costs to HKD 109.5 million[25]. - Interest expenses surged to HKD 134.3 million in the first half of 2023, marking a 291.5% increase year-on-year due to rising interbank rates[37]. - The financing costs for the six months ended June 30, 2023, amounted to HKD 109,495,000, significantly higher than HKD 57,418,000 in the same period of 2022[128]. Strategic Planning and Future Outlook - The company anticipates significant improvement in hotel performance in the second half of 2023 compared to the same period in 2022, as the latter was influenced by special operational circumstances[86]. - The Trust Group plans to continue its hedging strategy to mitigate the impact of potential interest rate hikes on distributable income[25]. - The company continues to focus on property investment as its primary business activity, maintaining consistency in accounting policies from the previous fiscal year[92]. Changes in Assets and Liabilities - The total number of overnight visitors to Hong Kong in H1 2023 was 6.6 million, significantly lower than the 14.9 million in 2019, indicating ongoing recovery challenges[58]. - Total receivables from tenants amounted to HKD 28,218,000 as of June 30, 2023, significantly up from HKD 9,211,000 as of December 31, 2022, reflecting a substantial increase in receivables[146]. - Trade payables increased to HKD 30,890,000 as of June 30, 2023, compared to HKD 17,446,000 as of December 31, 2022, indicating a rise in liabilities[147]. Compliance and Reporting Standards - The company has applied new and revised Hong Kong Financial Reporting Standards, which may impact the financial statements moving forward[95]. - The group will apply the revised Hong Kong Financial Reporting Standards for the annual consolidated financial statements for the year ending December 31, 2023[117]. - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards, with no significant impact from the revised standards adopted during the interim period[167].

Business Overview - Langham Hospitality Investments focuses on owning and investing in a hotel portfolio, primarily targeting completed hotels in Asia[8]. - The hotel portfolio includes high-end hotels classified as Grade A and Grade B by the Hong Kong Tourism Board, with the Langham Hotel and Cordis Hotel being Grade A[8]. - Langham Hospitality Group currently manages 26 hotels under the Langham, Cordis, and Eaton brands[32]. - The group has over 15 confirmed and in-development hotel projects across China, Southeast Asia, Australia, and North America[32]. - The Cordis brand focuses on high-end hotels and aims to expand in major cities in Asia and North America[41]. - The Eaton Workshop brand combines hospitality with cultural and social initiatives, providing platforms for artists and activists[44]. - The company is part of the Eagle Group, which includes a diverse range of hotel brands across four continents[32]. Financial Performance - The hotel portfolio's total revenue for 2022 increased by 28.9% year-on-year, including HKD 24.0 million in government subsidies[99]. - Operating profit before global marketing expenses reached HKD 212.7 million, representing a growth of 5.8 times[99]. - Net profit, excluding non-cash fair value changes from investment properties and derivative financial instruments, was HKD 118.1 million, an increase of 76.8% compared to the previous year[101]. - The total distributable income for the year ended December 31, 2022, was HKD 190.5 million, with a proposed distribution of HKD 95.3 million, reflecting a 7.4% increase from 2021[101]. - The valuation of the hotel portfolio increased from HKD 14,407.0 million at the end of 2021 to HKD 14,685.0 million at the end of 2022[101]. - The net asset value of the trust group as of December 31, 2022, was HKD 8,161.0 million, or HKD 2.49 per unit[101]. - The debt ratio decreased to 42.0% at the end of 2022 from 43.2% at the end of 2021[101]. - Financing costs increased by 25.6% year-on-year to HKD 145.1 million due to rising interest rates[100]. - The company proposed a final distribution of HKD 0.029 per unit for the year ended December 31, 2022, an increase from HKD 0.027 in 2021, resulting in a distribution yield of 2.6% based on the closing price of HKD 1.11 per unit as of December 31, 2022[95]. Corporate Governance - The company aims to maintain high standards of corporate governance to enhance its image and create value for shareholders[23]. - The company’s board of directors includes independent non-executive directors, ensuring corporate governance compliance[80]. - The company’s independent non-executive directors have extensive experience in finance and investment banking, enhancing corporate governance[197]. - The company’s independent non-executive directors include members with backgrounds in private equity and venture capital, indicating a strong strategic direction[197]. Sustainability and CSR - The company is committed to sustainable development through its CSR program, CONNECT, focusing on environmental, community, employee, and governance aspects[177]. - Energy consumption per square meter decreased to 1,097 MJ in 2022, down from 1,489 MJ in 2021[181]. - Waste sent to landfills per occupied room night was 2.6 liters in 2022, compared to 2.4 liters in 2021[181]. - All hotels achieved Platinum level in EarthCheck certification[181]. Market Strategy and Future Outlook - The company aims to enhance its market presence through strategic partnerships and expansions in key regions[177]. - Future outlook includes continued investment in new technologies and product offerings to improve guest experiences[177]. - The company is actively pursuing opportunities for mergers and acquisitions to strengthen its market position[177]. - The group continues to explore new market opportunities and strategic expansions to enhance its global footprint[64]. Operational Highlights - The average occupancy rate for premium hotels in Hong Kong increased to 55.9%, up 10.6 percentage points from 45.3% in 2021[138]. - The average revenue per available room (RevPAR) for premium hotels increased by 46.4% to HKD 786, compared to HKD 537 in the previous year[138]. - The hotel achieved an occupancy rate of 66.4% in 2022, up from 36.0% in 2021, with average room rates increasing by 43.4% year-on-year, leading to a 165.1% increase in room revenue[159]. - The total revenue for the hotel portfolio in 2022 was HKD 970.6 million, reflecting a year-on-year growth of 28.9%[157]. Challenges and Responses - The hotel industry faced significant challenges in the first half of 2022 due to COVID-19 restrictions, but business improved slightly in the second half[121]. - The company participated in government community isolation facilities and quarantine hotel programs during the pandemic[122]. - The company confirmed that it can meet its obligations following the proposed distribution, as verified by the auditors[95].

Financial Performance - Hotel portfolio revenue for the first half of 2022 was HKD 432.4 million, representing a 50.4% increase compared to HKD 287.5 million in the same period of 2021[21]. - Total rental income after service fees for the trust group was HKD 181.1 million, up 74.6% from HKD 103.7 million year-on-year[21]. - Profit attributable to unit holders, excluding fair value changes of investment properties and derivative financial instruments, surged 340.7% to HKD 87.7 million from HKD 19.9 million[21]. - Distributable income for the first half of 2022 reached HKD 124.6 million, a 246.1% increase from HKD 36.0 million in the previous year[21]. - In the first half of 2022, the hotel group's total revenue increased by 50.4% year-on-year, with a real increase of 46.7% after excluding government subsidies of HKD 12.2 million[27]. - The net property income of the trust group rose by 85.8% year-on-year to HKD 171.9 million[27]. - The fair value gain from investment properties was HKD 444.1 million, contributing to a net profit of HKD 610.4 million for the period[28]. - Total revenue for the Hong Kong Langham Hotel was HKD 133.8 million, with room revenue contributing HKD 104.5 million, reflecting a year-on-year increase of 58.7%[57]. - The total revenue for the Hong Kong Eaton Hotel was HKD 137.2 million, with room revenue increasing by 305.1% year-on-year[63]. Asset and Liability Management - The total value of the hotel portfolio as of June 30, 2022, was HKD 14,887 million, compared to HKD 14,407 million at the end of 2021[23]. - Net asset value per unit increased to HKD 2.56 as of June 30, 2022, from HKD 2.41 at the end of 2021[23]. - The debt ratio improved to 41.7% as of June 30, 2022, down from 43.2% at the end of 2021[23]. - The trust group's net asset value was HKD 8,335.3 million, or HKD 2.56 per unit, with a debt ratio of 41.7%[31]. - As of June 30, 2022, the total outstanding borrowings of the trust group amounted to HKD 6,317.0 million, unchanged from December 31, 2021[71]. - The trust group has a cash balance of HKD 139.0 million as of June 30, 2022, down from HKD 179.2 million on December 31, 2021, to meet operational needs[76]. - The asset-liability ratio is 41.7% as of June 30, 2022, compared to 43.2% on December 31, 2021[75]. - The total assets of the trust group increased to HKD 15,148.9 million as of June 30, 2022, from HKD 14,612.6 million on December 31, 2021[75]. Operational Performance - Hotel occupancy rates and room prices increased compared to the first half of 2021, with room revenue growing 3.4 times year-on-year[26]. - Average daily room availability for the hotel portfolio was 1,631 rooms in the first half of 2022, with an occupancy rate of 72.4%, up 45.1 percentage points from 27.3% in the previous year[53]. - The average room rate for the hotel portfolio increased by 66.3% to HKD 1,422 in the first half of 2022, compared to HKD 855 in the same period of 2021[53]. - The restaurant revenue for the hotel operations dropped by 48.1% year-on-year due to the impact of the COVID-19 pandemic[27]. - The occupancy rate for Grade A luxury hotels in Hong Kong reached 54.0% in the first half of 2022, up 18.0 percentage points from 36.0% in the same period of 2021[56]. - The overall hotel occupancy rate in Hong Kong was 63.0%, an increase of 7.0 percentage points from 56.0% in the first half of 2021[56]. Distribution Policy - The trust group's current distribution policy is to distribute no less than 90% of the total distributable income to unit holders[18]. - No interim distribution was declared for the first half of 2022, consistent with the previous year[19]. - The trust group decided not to distribute any of the distributable income for the six months ended June 30, 2022, due to the ongoing impact of the COVID-19 pandemic on hotel operations[65]. Corporate Governance - The board emphasized the importance of maintaining high corporate governance standards to mitigate risks and enhance shareholder value[101]. - The company plans to implement new policies to further strengthen compliance and regulatory frameworks[101]. - The trust group has established multiple corporate governance measures to address potential conflicts of interest, ensuring the interests of independent unit holders are protected[111]. - The audit committee is responsible for overseeing the implementation of corporate governance measures related to the Eagle priority right agreement[112]. - The independent non-executive directors review the compliance with the Eagle priority right agreement annually and disclose the results in the annual report[111]. Future Outlook - The company expects continued challenges in the second half of 2022 due to ongoing COVID-19 impacts and geopolitical tensions affecting economic recovery[32]. - The company provided an optimistic outlook, projecting a revenue growth of 25% for the next quarter, aiming for $625 million[90]. - New product launches are expected to contribute an additional $50 million in revenue, with a focus on innovative technology solutions[90]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next year[90]. Employee and Social Responsibility - The total number of employees in the hotels remained stable compared to December 31, 2021, with competitive salary levels and performance-based bonuses[158]. - Each employee received an average of approximately 26.2 hours of training in the first half of 2022[159]. - The trust's corporate social responsibility program, CONNECT, focuses on governance, environmental protection, community, and employee welfare[159].