Hotel Portfolio and Management - The Langham Hospitality Investments focuses on owning and investing in a portfolio of hotels, primarily in Asia, with a current portfolio including The Langham Hong Kong, Cordis Hong Kong, and Eaton HK[4]. - The Langham Hong Kong has 498 rooms and is rated as a premium hotel by the Hong Kong Tourism Board, located in a prime shopping and cultural area[7]. - Cordis Hong Kong features 669 rooms and is also rated as a premium hotel, situated near popular markets and public transport, enhancing its appeal to both local and international guests[9]. - Eaton HK, rated as a high-end hotel, has 465 rooms and underwent significant renovations in 2018 to cater to the millennial traveler, focusing on cultural and community themes[14]. - The group is managed by Langham Hospitality Group, which operates 26 hotels across four continents, with over 15 projects in various stages of development in China, Southeast Asia, Australia, and North America[29]. - The company has a total of 26 hotel properties, with three currently owned in Hong Kong[35]. - The company is managed by Langham Hospitality Investments Limited, which acts as the trustee-manager[39]. - The company’s main operating location is in Wan Chai, Hong Kong[42]. - The company’s shares are listed on the Hong Kong Stock Exchange under the stock code 1270[42]. Financial Performance - Hotel portfolio revenue increased by 28.1% to HKD 753.1 million in 2021 from HKD 587.9 million in 2020[54]. - Trust group's total rental income after service fees rose by 7.7% to HKD 224.3 million, compared to HKD 208.3 million in the previous year[54]. - Distributable income surged by 1541.7% to HKD 98.5 million, up from HKD 6.0 million in 2020[54]. - Net profit attributable to unit holders, excluding fair value changes of investment properties and derivative financial instruments, increased by 432.3% to HKD 66.8 million from a loss of HKD 20.1 million in 2020[54]. - Average revenue per available room (RevPAR) increased by 38.8% for the full year, significantly higher than the 6.4% increase in the first half of 2021[58]. - Total revenue from food and beverage operations grew by 51.4% year-on-year, with a 20.9% increase in the first half of 2021[61]. - The total value of the hotel portfolio was HKD 14,407 million as of December 31, 2021, down from HKD 14,802 million at the end of 2020[63]. - The net asset value per unit was HKD 2.41 as of December 31, 2021, compared to HKD 2.52 a year earlier[63]. - The trust group recorded a loss attributable to unitholders of HKD 346.6 million in 2021, a decrease of 87.8% from a loss of HKD 2,832.8 million in 2020[89]. Dividend Policy - The company reported a final dividend of HKD 0.027 per unit for the year ended December 31, 2021, resulting in a dividend yield of 3.2% based on the closing price of HKD 0.84 per unit on December 31, 2021[46]. - The trust group's policy is to distribute not less than 90% of its distributable income to unit holders, with a distribution rate of 90% for the year 2020[46]. - The company did not declare an interim dividend for the six months ended June 30, 2021, similar to 2020[46]. - The company has scheduled its annual general meeting for May 12, 2022, to approve the proposed final dividend[43]. - The trust group's policy is to distribute at least 90% of the total distributable income, resulting in a distribution of HKD 88.7 million for 2021, with a per unit distribution of HKD 0.027[102]. Strategic Focus and Future Outlook - The company aims to expand its presence in major cities in Asia and North America through new hotel openings and transformations[30]. - The strategic focus includes enhancing guest experiences and expanding market reach through targeted renovations and new developments[30]. - The company is positioned to capitalize on the growing demand for luxury accommodations in key urban markets[30]. - Future outlook includes plans to expand into new markets, targeting a 15% increase in market share over the next two years[130]. - The company is investing in new product development, with a budget allocation of $50 million for technology upgrades in hotel management systems[130]. - The company has identified potential acquisition targets in the Asia-Pacific region to enhance its portfolio, aiming for a 10% increase in asset value through strategic acquisitions[130]. Sustainability Initiatives - The management team emphasizes a commitment to sustainability, with plans to reduce carbon emissions by 30% by 2025[130]. - The company aims to achieve net-zero emissions by 2045 as part of its climate leadership strategy[152]. - The company has identified eight implementation pathways to drive impact and has set clear directions and objectives for each pathway[152]. - The company emphasizes the importance of sustainable dining options, promoting plant-based menu choices to contribute significantly to environmental efforts[152]. - The company’s environmental, social, and governance (ESG) report adheres to the Hong Kong Stock Exchange's guidelines, covering all properties under its comprehensive operations[155]. - The company’s sustainability initiatives are closely linked to its hotel operations through its corporate social responsibility program, CONNECT[156]. - The company focuses on energy and water conservation, waste management, and addressing climate change as part of its environmental efforts[157]. - The company has signed a 4-year sustainable development-linked loan agreement totaling HKD 7.5 billion with 11 banks across the UK, China, Hong Kong, Japan, and Singapore, marking the first such loan in the Asian hotel industry[165]. Community Engagement - The hotels are actively involved in community service, supporting those affected by the COVID-19 pandemic in Hong Kong[198]. - The Hong Kong Langham Hotel provided 125 pink afternoon teas to healthcare workers at six COVID-19 community testing centers on International Day of Happiness[199]. - The hotel collaborated with Sister Bento to create the Giftntake project, facilitating the donation of non-perishable items to low-income single mothers and children in Jordan and Sham Shui Po[200]. - The Hong Kong Cordis Hotel donated 100 nutritious meal boxes weekly to the homeless in collaboration with the Yau Ma Tei Gospel Hall, sharing warmth and meals with local residents during the pandemic[200].

Financial Performance - Hotel portfolio revenue for the first half of 2021 was HKD 287.5 million, an increase of 10.7% compared to HKD 259.7 million in the same period of 2020[11]. - Total rental income for the trust group decreased by 1.1% to HKD 103.7 million from HKD 104.9 million year-on-year[11]. - Profit attributable to unit holders, excluding fair value changes of investment properties and derivative financial instruments, was HKD 19.9 million, a significant increase of 250.8% from a loss of HKD 13.2 million in the previous year[11]. - The average revenue per available room (RevPAR) increased by 6.4% in the first half of 2021, reflecting a recovery in hotel occupancy rates despite ongoing travel restrictions[14]. - Food and beverage revenue grew by 20.9% year-on-year, driven by the easing of social distancing measures and increased local dining demand[14]. - The total revenue for the hotel segment was HKD 287.5 million, with a year-on-year increase of 10.7%[43]. - The net profit excluding fair value changes of investment properties and derivative financial instruments increased by 250.8% to HKD 19.9 million compared to a loss of HKD 13.2 million in the previous year[34]. - The company reported a significant increase in interest income by 28.6% to HKD 0.9 million in the first half of 2021, compared to HKD 0.7 million in the same period of 2020[34]. - The total revenue for the period was HKD 103,662,000, down from HKD 104,883,000 in 2020, indicating a decrease of approximately 1.2%[162]. - The group reported a total revenue of HKD 112,537,000, down from HKD 103,662,000, reflecting the impact of the pandemic on hotel operations[192]. Asset Valuation and Financial Position - The total value of the hotel portfolio as of June 30, 2021, was HKD 14,270 million, down from HKD 14,802 million at the end of 2020[11]. - The net asset value per unit decreased to HKD 2.36 from HKD 2.52 in the previous year[11]. - The fair value of investment properties decreased by HKD 553.7 million, resulting in a net loss after tax of HKD 509.5 million for the first half of 2021[22]. - The fair value decrease of investment properties was HKD 553,741,000, a notable reduction from HKD 1,941,616,000 in 2020, indicating a decrease of about 71.5%[162]. - The total assets as of June 30, 2021, were reported at HKD 6,000,000,000, compared to HKD 6,500,000,000 as of December 31, 2020, indicating a decrease of about 7.7%[164]. - The company reported a total equity of HKD 2,500,000,000 as of June 30, 2021, down from HKD 3,000,000,000 at the end of 2020, reflecting a decline of approximately 16.7%[164]. - The total equity decreased from HKD 8,129,597,000 to HKD 7,629,339,000, a decline of approximately 6.1%[165]. - The total rental income from the main lessee was HKD 111,575,000, a slight decrease from HKD 111,885,000 in the same period last year[185]. Debt and Financing - The debt ratio increased to 44.1% from 42.6% year-on-year, indicating a slight rise in leverage[11]. - Financing costs decreased by 35.2% to HKD 60.0 million, driven by lower interest rates and a reduction in outstanding loans[28]. - The total financing costs decreased by 35.2% to HKD 60.0 million in the first half of 2021, compared to HKD 92.6 million in the same period of 2020[30]. - The company incurred interest payments of HKD 56,744,000, compared to HKD 89,663,000 in the previous period, a reduction of about 36.8%[171]. - The trust group's total assets were HKD 14,561.6 million as of June 30, 2021, compared to HKD 15,079.6 million as of December 31, 2020[56]. Operational Performance - The average occupancy rate for the hotel portfolio increased to 27.3% in the first half of 2021, up from 21.0% in the same period of 2020, representing a growth of 6.3 percentage points[39]. - The average room rate for the hotel portfolio decreased by 18.0% to HKD 855 in the first half of 2021, compared to HKD 1,043 in the previous year[39]. - The occupancy rate of The Langham, Hong Kong reached 20.6% in the first half of 2021, while the average room rate decreased by 23.7%[44]. - The occupancy rate of Eaton Hong Kong was 35.9% in the first half of 2021, with an average room rate decline of 10.6% year-on-year[48]. - The total outstanding borrowings of the trust group as of June 30, 2021, remained at HKD 6,417.0 million, unchanged from December 31, 2020[54]. Corporate Governance - The trust structure of Langham Hospitality Investments is governed by a trust deed established on May 8, 2013, under Hong Kong law, allowing investment solely in the securities and interests of the company[78]. - The company has established multiple corporate governance measures to address potential conflicts of interest, ensuring the protection of independent unit holders' interests[82]. - As of June 30, 2021, the trust and the company have complied with all applicable code provisions and have adopted some of the best practices outlined in the corporate governance code[83]. - The company is committed to maintaining high standards of corporate governance to enhance its image and create value for unit holders while minimizing fraud risk[77]. - The company has established a risk management and internal control system to provide reasonable assurance against material misstatements or losses[102]. - The audit committee is responsible for overseeing the execution of governance measures related to the Eagle priority agreements, ensuring compliance with their terms[88]. Community and Sustainability - The hotel management has established a corporate social responsibility plan called CONNECT, focusing on governance, environmental protection, community, and employee welfare[133]. - All three hotels have received EarthCheck Platinum certification, and the Hong Kong hotel has also obtained ISO 14001 certification[133]. - In the first half of 2021, hotel staff participated in approximately 327 hours of community service and volunteer activities[133]. - Each employee received an average of 12.1 hours of occupational health and safety training in the first half of 2021[133]. - The hotels have been recognized as "Caring Company" for over ten years, collaborating with local community partners through various initiatives[133].

Hotel Portfolio and Operations - The Langham Hospitality Investments focuses on owning and investing in a portfolio of hotels, primarily in Asia, including The Langham Hong Kong, Cordis Hong Kong, and Eaton HK[4]. - The Langham Hong Kong is a luxury hotel with 498 rooms and a building area of 375,000 square feet, classified as a premium hotel[7]. - Cordis Hong Kong features 669 rooms and a building area of 580,000 square feet, also classified as a premium hotel, located in the bustling Mong Kok area[10]. - Eaton HK, located between Tsim Sha Tsui and Mong Kok, has 465 rooms and underwent significant renovations in 2018 to enhance its cultural and community-focused theme[12]. - The group currently manages 23 hotels under The Langham, Cordis, and Eaton brands across four continents, with over 15 projects confirmed or under development in China, Southeast Asia, Australia, and North America[13]. - The hotels are strategically located near major commercial and leisure hubs, enhancing their appeal to both local and international guests[6]. - The company aims to expand its portfolio with new hotel projects and renovations to meet the evolving demands of travelers[15]. - The Langham brand emphasizes luxury and elegance, while the Cordis brand focuses on high-end service and community engagement[14][15]. - The hospitality group is committed to providing unique experiences and exceptional service to guests, positioning itself as a leader in the luxury hotel market[14]. - The company is exploring opportunities for market expansion and potential acquisitions to strengthen its presence in key regions[13]. Financial Performance - Hotel portfolio revenue decreased by 56.5% to HKD 587.9 million in 2020 from HKD 1,350.9 million in 2019[36]. - Total rental income after service fees dropped by 57.0% to HKD 208.3 million in 2020 compared to HKD 483.9 million in 2019[36]. - The company reported a loss attributable to unit holders of HKD 20.1 million, a decline of 111.9% from a profit of HKD 168.6 million in 2019[36]. - Distributable income fell by 97.7% to HKD 6.0 million in 2020 from HKD 259.1 million in 2019[36]. - The company did not declare any interim or final distributions for 2020, compared to 8.7 HKD cents and 3.4 HKD cents in 2019 respectively[36]. - Total value of the hotel portfolio as of December 31, 2020, was HKD 14,802 million, down from HKD 15,572 million in June 2020 and HKD 17,500 million in December 2019[36]. - Net asset value per unit decreased to HKD 2.52 as of December 31, 2020, from HKD 3.68 in June 2020 and HKD 4.68 in December 2019[36]. - Debt ratio improved to 42.6% in December 2020 from 46.2% in June 2020, but increased from 40.6% in December 2019[36]. - The board decided to reduce the distribution rate from 100% to at least 90% of distributable income starting in 2020 to enhance cash reserves[31]. - The ongoing COVID-19 pandemic significantly impacted hotel operations, leading to the recommendation of no final distribution for the year[32]. - The hotel portfolio recorded an operating loss of HKD 13.2 million in 2020, compared to an operating profit of HKD 464.9 million in the previous year[39]. Impact of COVID-19 - The average occupancy rate for the hotel portfolio dropped to 24.8% in 2020 from 73.3% in 2019, a decline of 48.5 percentage points[66]. - The average room rate for the hotel portfolio decreased by 39.9% to HKD 933 in 2020 from HKD 1,553 in 2019[66]. - The total revenue for the hotel portfolio was HKD 587.9 million, down from HKD 1,000 million in 2019[66]. - The average revenue per available room and food and beverage business continued to suffer significant impacts as of January 2021[45]. - The company is focusing on developing the local staycation and long-stay market due to the lack of travelers, while also launching various promotional activities for its local dining business[45]. Sustainability Initiatives - The company aims to halve its environmental impact and strengthen social connections in a rapidly changing world, as outlined in its 2030 sustainability vision[112][113]. - The company has completed a comprehensive materiality assessment, including benchmarking and internal surveys, to align its CONNECT strategy with stakeholder expectations[110]. - The company is committed to achieving specific sustainability goals, which will result in lower interest rates on its sustainable development-linked loans if met[115]. - The company has established a governance structure to oversee its environmental, social, and governance (ESG) strategies and reporting, with the board responsible for monitoring sustainability trends[107]. - The company emphasizes energy and water conservation, waste management, and addressing climate change as part of its environmental initiatives[106]. - The company achieved EarthCheck Platinum certification for all three hotels, recognizing over ten years of sustainability efforts[120]. - The hotels implemented waste reduction measures, including recycling and reusing various materials, which contributed to sustainability efforts[126]. - The partnership with ecoSPIRITS allowed the hotels to reduce the carbon footprint of spirits packaging by 80% and cut down 95% of cardboard and glass waste[126]. - The total electricity consumption of the hotels was 124,300 GJ, a decrease of 15% compared to 2019 (146,484 GJ)[125]. - The total gas/fuel consumption in 2020 was 34,457 GJ, down 22% from 2019 (44,078 GJ)[125]. - The total greenhouse gas emissions (Scope 1 and Scope 2) for 2020 were 19,082 tons of CO2 equivalent, a reduction of 16% from 2019 (22,785 tons)[125]. - Total water consumption decreased by 30% to 311,444 cubic meters compared to 2019's 445,347 cubic meters, primarily due to social distancing measures and lower hotel occupancy rates[132]. Employee Engagement and Safety - The company has a strong focus on employee safety, equal opportunities, and career advancement within the hotel industry[106]. - The company has implemented a human resources policy emphasizing employee ethics and engagement, supported by training programs and performance assessments[150]. - The employee composition was 55% female and 45% male, with 97% being long-term employees[156][160]. - The company organized a global fitness challenge to promote employee well-being during the COVID-19 pandemic[154]. - The company provided necessary personal protective equipment, including medical masks and hand sanitizers, to ensure employee safety[154]. - The key performance indicators (KPIs) related to health and safety showed a slight deterioration, with the Lost Time Injury Frequency Rate (LTIFR) increasing from 21 in 2019 to 26 in 2020, and the accident rate rising from 6.3 to 8.1[166][167]. - In 2020, the average training hours per employee decreased to 16 hours from 26 hours in 2019 due to the introduction of more flexible learning methods[173]. Community Engagement - Over 2,300 meals were donated through the "Delicious Sharing" program in the first three months, with 3,100 hot meals provided to those in need[139]. - Employees contributed over 603 hours to charitable and social activities in 2020, earning recognition for their community care efforts over the past decade[148]. - The hotels engaged in community support by donating meals and essential supplies to vulnerable groups affected by the COVID-19 pandemic[140][141]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to enhance its image and create value for shareholders[198]. - The trust group structure is simplified and outlined in the provided diagram[199]. - The company holds 100% beneficial interest in ordinary shares and 100% in preferred shares, indicating full ownership[200].

Financial Performance - Hotel portfolio revenue for the first half of 2020 was HKD 259.7 million, a decrease of 67.9% compared to HKD 810.2 million in the same period of 2019[14]. - Total rental income for the trust group decreased by 64.5% to HKD 104.9 million from HKD 295.5 million year-on-year[14]. - The total revenue, including HKD 14.3 million in government subsidies, fell by 68.0% year-on-year[17]. - The net loss after tax for the first half of 2020 was HKD 2,037.1 million, with a net loss of HKD 13.2 million excluding fair value changes of investment properties and derivative financial instruments[18]. - The net loss attributable to shareholders was HKD 2,037.1 million in the first half of 2020, a drastic decline of 5,532.3% from a profit of HKD 37.5 million in the previous year[46]. - The total comprehensive loss attributable to unit holders was HKD 2,037,076,000, compared to a profit of HKD 37,542,000 in the prior period[165]. - The basic and diluted loss per unit was HKD 0.95, a sharp decline from HKD 0.02 in the same period last year[165]. - The loss before tax for the period was HKD 2,033,090,000, compared to a profit of HKD 71,820,000 in the previous year, indicating a significant downturn[165]. Asset Valuation - The fair value of investment properties decreased by HKD 1,941.6 million during the reporting period[18]. - The fair value of investment properties was HKD 15,572 million as of June 30, 2020, compared to HKD 17,500 million as of December 31, 2019[65]. - The fair value loss on investment properties was HKD 1,941,616,000 for the period, compared to HKD 74,951,000 in the previous year, highlighting a significant impact on asset valuation[165]. - The fair value of investment properties as of June 30, 2020, for The Langham, Hong Kong was HKD 5,645,000,000, down from HKD 6,475,000,000 as of December 31, 2019, indicating a decrease of 12.85%[193]. Debt and Liabilities - The debt ratio increased to 46.2% from 40.6% at the end of 2019[14]. - Total outstanding borrowings amounted to HKD 7,227 million, resulting in a debt ratio of 46.2% as of June 30, 2020[19]. - The total liabilities increased to HKD 7,218,807,000 from HKD 7,158,505,000, indicating a slight increase of 0.8%[168]. - The asset-to-liability ratio increased to 46.2% as of June 30, 2020, compared to 40.6% as of December 31, 2019[63]. Revenue from Hotels - The average revenue per available room (RevPAR) for the hotel portfolio dropped by 85.7% due to a 91.2% decline in guest numbers and a 69.8 percentage point decrease in occupancy rate[17]. - Average revenue per available room (RevPAR) for Hong Kong Langham Hotel, Hong Kong Cordis Hotel, and Hong Kong Eaton Hotel fell by 93.5%, 81.9%, and 76.4% respectively in July 2020 compared to the previous year[27]. - The total revenue for Hong Kong Langham Hotel in H1 2020 was HKD 75.2 million, reflecting a year-on-year decline of 74.8%[52]. - The total revenue for Hong Kong Cordis Hotel in H1 2020 was HKD 107.0 million, reflecting a year-on-year decline of 70.6%[52]. - The total revenue for Hong Kong Eaton Hotel in H1 2020 was HKD 77.5 million, reflecting a year-on-year decline of 47.6%[52]. Fundraising and Financial Strategy - The company anticipates that the fundraising plan will raise at least HKD 648 million, potentially up to HKD 1,019 million if all unit holders participate[23]. - The fundraising proceeds will primarily be used to repay part of the outstanding loans and to deposit additional collateral as part of the financial covenant relief mechanism[23]. - The company expects the fundraising to strengthen its financial position and ensure continued operations without breaching financial covenants[24]. - The company is exploring feasible options to improve its financial situation, including hiring financial advisors for strategic planning[22]. Corporate Governance - The trust and the company have maintained compliance with applicable corporate governance codes and regulations during the six-month period ending June 30, 2020[89]. - The group has established multiple corporate governance measures to address potential conflicts of interest, ensuring the interests of unit holders are protected[88]. - The audit committee is responsible for overseeing the execution of governance measures related to the Eagle priority agreements, ensuring compliance with their terms[94]. - The remuneration committee has a formal and transparent process for determining the remuneration of executive directors and senior management, ensuring competitive yet reasonable compensation[100]. Employee and Community Engagement - The average training hours per employee in the first half of 2020 was approximately 9.5 hours, emphasizing the company's commitment to employee development[137]. - The company has established a corporate social responsibility program, CONNECT, focusing on governance, environmental protection, community engagement, and employee welfare[137]. Market Outlook - The outlook for the international travel and tourism industry remains bleak, with expectations of a slow recovery for the hotel sector post-pandemic[24]. - The group experienced a significant decline in operational performance due to the COVID-19 pandemic, impacting the overall gross profit from the hotels[182].

Hotel Portfolio and Operations - The hotel portfolio includes three properties: The Langham, Hong Kong; Cordis, Hong Kong; and Eaton, Hong Kong, with a focus on high-end accommodations in Asia [2]. - The Langham, Hong Kong has a building area of 375,000 square feet and is located in a prime shopping and leisure area [6]. - Cordis, Hong Kong is the only large luxury hotel in the Mong Kok area, featuring 669 rooms and a building area of 580,000 square feet [9]. - Eaton, Hong Kong underwent significant renovations in 2018, transforming it into a culturally themed hotel with a building area of 339,000 square feet and 465 rooms [12]. - The company is part of the Langham Hospitality Group, which manages 23 hotels across various brands and has over 15 projects in development across China, Southeast Asia, Australia, and North America [14]. - The Langham brand emphasizes luxury and elegance, while the Cordis brand focuses on high-end service and modern design [15][16]. - The properties are strategically located near major transportation hubs, facilitating easy access for guests [4][7]. - The hotels are positioned in vibrant commercial and cultural districts, attracting both local and international visitors [2][10]. Financial Performance - The company declared a final distribution of HKD 3.4 per unit for the year ended December 31, 2019, down from HKD 10.5 in 2018, resulting in a total annual distribution of HKD 12.1 per unit [30]. - The distribution yield based on the closing price of HKD 2.36 per unit as of December 31, 2019, is 5.1% [30]. - The board decided to reduce the distribution rate from 100% to at least 90% of distributable income starting in 2020 to increase cash reserves amid a challenging trading environment [29]. - The company reported a mid-term distribution of HKD 8.7 per unit in September 2019 [30]. - The hotel portfolio revenue decreased by 17.1% to HKD 1,350.9 million in 2019 from HKD 1,629.8 million in 2018 [35]. - Total rental income after service fees dropped by 21.4% to HKD 483.9 million in 2019 compared to HKD 615.5 million in 2018 [35]. - The profit attributable to unit holders, excluding changes in fair value of investment properties and derivative financial instruments, fell by 45.9% to HKD 168.6 million in 2019 from HKD 311.6 million in 2018 [35]. - Average revenue per available room (RevPAR) for the hotel portfolio decreased by 31.1% for the year, with a 55.5% decline in the second half of 2019 [38]. - The overall hotel market in Hong Kong saw a 23.9% decline in average revenue per available room for the entire year [38]. - The financing cost increased by 16.6% to HKD 220.2 million in 2019 due to rising interest rates [42]. - The total value of the hotel portfolio decreased to HKD 17,500 million as of December 31, 2019, down from HKD 20,177 million at the end of 2018 [44]. - The net asset value per unit was HKD 4.68 as of December 31, 2019, compared to HKD 6.14 at the end of 2018 [44]. - The debt ratio increased to 40.6% as of December 31, 2019, up from 34.2% at the end of 2018 [44]. - Total rental income (excluding service fees) decreased by 21.4% to HKD 483.9 million in 2019, with floating rental income down 32.4% to HKD 325.4 million [52][53]. - Net property income fell by 23.6% to HKD 448.3 million in 2019 due to increased property-related expenses, which rose by 24.9% to HKD 35.6 million [58][59]. - The fair value of investment properties (hotel portfolio) decreased by HKD 2,788.4 million in 2019, resulting in a loss attributable to unitholders of HKD 2,634.7 million [61][65]. - Distributable income decreased by 36.9% to HKD 259.1 million under the 100% distribution policy in 2019 [66]. - The total distributable income for the year ended December 31, 2019, was HKD 259.1 million, a decrease of 36.9% from HKD 410.5 million in 2018 [81]. Operational Challenges and Strategies - The company is focused on enhancing cash reserves to better navigate the ongoing asset enhancement activities [29]. - The group remains confident in Hong Kong's long-term recovery as a world-class business and leisure travel destination despite current adverse market conditions [49]. - Global marketing expenses decreased by 28.9% in 2019, reflecting the overall decline in revenue [54]. - The average daily room revenue for the Hong Kong Langham Hotel decreased by 30.9% year-on-year, with an occupancy rate of 75.3% compared to 91.2% in 2018 [71]. - The average daily room revenue for the Hong Kong Cordis Hotel decreased by 29.4% year-on-year, with an occupancy rate of 73.1% compared to 95.0% in 2018 [71]. - The average daily room revenue for the Hong Kong Eaton Hotel decreased by 29.9% year-on-year, with an occupancy rate of 71.6% compared to 87.0% in 2018 [71]. - The number of room nights occupied by mainland Chinese travelers decreased by 19.4%, accounting for 35.9% of total occupied room nights [74]. - The food and beverage business experienced a decline of 10.7% year-on-year, although it performed better than the accommodation segment during the social unrest [76]. Environmental and Social Responsibility - The company emphasizes energy and water conservation, waste management, and climate change as part of its corporate social responsibility initiatives [112]. - The hotels received the EarthCheck Platinum certification, recognizing over ten years of sustainable practices [117]. - The Hong Kong Eaton Hotel was awarded the LEED v4 Gold Rating for Interior Design and Construction [117]. - The hotels have implemented waste reduction measures, including recycling and reusing materials such as paper, metal, and glass [122]. - The introduction of a new "Green Meeting Package" aims to provide sustainable meeting solutions and reduce environmental impact [129]. - The company has partnered with EarthCheck to implement a systematic approach to address various environmental issues in hotel management, ensuring compliance with regulations and continuous improvement in environmental performance [114]. - Employees contributed over 2,500 hours of support to charitable and social projects in 2019 [130]. - The company supported the "Water Bottle Initiative" by providing free water dispensers and educational talks in schools and community centers [135]. - The company organized the "Magic Pink Afternoon Tea," donating HKD 10 for each tea set sold to the Hong Kong Breast Cancer Foundation [141]. - The company has been actively involved in environmental initiatives, including the "Soap Recycling Program" to support hygiene projects across Asia [138]. Governance and Management - The company has committed to maintaining high standards of corporate governance to enhance its image and create value for unit holders [162]. - The board of directors consists of 50% independent non-executive directors, ensuring a balanced governance structure [190]. - The trust group has adhered to all applicable corporate governance codes and has adopted some of the recommended best practices during the review year [184]. - The management team has extensive experience, with the CFO having approximately 40 years in the hotel industry and the investor relations head possessing 18 years of experience in real estate [105][107]. - The company is focused on enhancing communication and engagement with shareholders and investors through its investor relations department [107]. - The management board is responsible for ensuring the trust's obligations under the trust deed are fulfilled, including safeguarding unit holders' rights [200]. - The company has a risk management policy in place to identify potential risks and opportunities [196]. - The board conducts regular reviews of financial controls and compliance systems [199]. - The company emphasizes ethical and responsible business practices to maintain stakeholder trust while expanding operations [155]. - The company has a strong internal control and accountability system to ensure ethical business practices [112]. Employee Development and Safety - The company expanded its talent development program in 2019, focusing on attracting and retaining young talent [150]. - In 2019, the average training hours per employee increased to 26 hours from 21.8 hours in 2018, indicating a strengthened training program [154]. - The management committee members received an average of 9.3 hours of training in 2019, while managers and general staff averaged 26.4 hours [154]. - The Lost Time Injury Frequency Rate (LTIFR) improved from 35 in 2018 to 21 in 2019, indicating better workplace safety [149]. - The accident rate decreased from 8.3 in 2018 to 6.3 in 2019, reflecting enhanced safety measures [149]. - The company participated in the Y-WE program, providing one week of work experience to help youth understand hotel operations [134]. - The company has been recognized as a "Good Employer" under the Mandatory Provident Fund Scheme for the 2018-19 period [142].

Financial Performance - Hotel portfolio revenue for the first half of 2019 was HKD 810.2 million, a 6.5% increase from HKD 761.1 million in the same period of 2018[16]. - Total rental income for the trust group was HKD 295.5 million, up 3.8% from HKD 284.6 million year-on-year[16]. - Profit attributable to unit holders, excluding fair value changes of investment properties and derivative financial instruments, decreased by 4.8% to HKD 137.3 million from HKD 144.2 million[16]. - Distributable income for the period was HKD 184.6 million, down 2.3% from HKD 189.0 million in the previous year[16]. - The interim distribution per unit was set at HKD 0.087, a decrease of 3.3% from HKD 0.090 in 2018[11]. - Net profit for the trust group fell by 94.5% to HKD 37.5 million, while distributable income decreased by 2.3% to HKD 184.6 million[25]. - The average revenue per available room (RevPAR) for the hotel portfolio in the first half of 2019 was HKD 1,530, a decrease of 5.0% year-on-year, primarily due to a 3.3% drop in average daily rate to HKD 1,684 and a 1.7 percentage point decline in occupancy rate to 90.8%[49]. - Total room revenue for the hotel portfolio increased by 0.5% year-on-year to HKD 451.3 million, accounting for 55.7% of total hotel revenue[49]. - Basic and diluted earnings per unit decreased to HKD 0.02 from HKD 0.32 year-over-year[164]. Asset and Debt Management - The total value of the hotel portfolio as of June 30, 2019, was HKD 20,180 million, slightly up from HKD 20,177 million at the end of 2018[16]. - Net asset value per unit decreased to HKD 6.04 from HKD 6.14 at the end of 2018[16]. - The debt ratio as of June 30, 2019, was 34.4%, compared to 34.2% at the end of 2018[16]. - As of June 30, 2019, the total borrowings of the trust group were HKD 6,985 million, with 57.3% of the borrowings fixed at a weighted average swap rate of 1.65%[59]. - The trust group's total assets as of June 30, 2019, were HKD 20,332.5 million, with a debt-to-asset ratio of 34.4%[62]. - Cash reserves stood at HKD 66.4 million as of June 30, 2019, down from HKD 86.9 million at the end of 2018[63]. - The fair value of investment properties decreased by HKD 75.0 million, leading to a 94.5% drop in profit attributable to unitholders to HKD 37.5 million[41]. Revenue and Expenses - Average room revenue decreased, but food and beverage revenue at the Hong Kong Eaton Hotel increased significantly, contributing to a 14.7% growth in total food and beverage revenue for the hotel portfolio[20]. - The average interest rate for the trust group rose to 2.7% in the first half of 2019, up from 2.0% in the same period of 2018, leading to a 16.0% increase in financing costs to HKD 100.3 million[21]. - Financing costs increased by 16.0% year-on-year to HKD 100.3 million, with interest expenses rising by 34.1% to HKD 90.8 million[38]. - The overall operating profit margin decreased by 0.3 percentage points to 40.1%, despite a 5.7% increase in operating profit before global marketing expenses[20]. Market Conditions and Strategy - The trust group expects significant slowdowns in hotel business performance due to ongoing protests, with current room bookings and revenue expected to decline by at least 20% in August[26]. - The trust group has adopted a more flexible pricing strategy to maximize hotel occupancy rates in response to potential adverse factors affecting the hotel industry[26]. - The number of mainland Chinese travelers increased by 12.4% year-on-year, accounting for 39.3% of total visitors to Hong Kong[51]. Corporate Governance - The company has established a strong governance framework, ensuring compliance with regulatory requirements and best practices[81]. - The board's composition reflects a balance of industry experience and independent oversight, which is crucial for sustainable growth[73][74]. - The trust group is committed to maintaining high standards of corporate governance to enhance the company's image and create value for unit holders[82]. - The trust and the company have complied with applicable corporate governance codes and best practices as of June 30, 2019[89]. - The audit committee consists of three independent non-executive directors, ensuring effective oversight of financial reporting and risk management[99]. Human Resources and Community Engagement - The total number of employees in the hotels remained stable compared to December 31, 2018, with competitive salary levels and performance-based bonuses[136]. - The average training hours per employee in the hotels during the first half of 2019 was approximately 14.1 hours[137]. - The trust's commitment to corporate social responsibility included approximately 835 hours of community service and volunteer activities by hotel staff in the first half of 2019[137]. Financial Reporting and Compliance - The financial statements were prepared in accordance with Hong Kong Accounting Standards No. 34[160]. - Deloitte conducted a review of the financial statements and found no issues that would lead to a belief that the statements were not prepared in accordance with the relevant standards[162]. - The financial statements were prepared on a going concern basis, considering the group's existing banking relationships and the fair value of its assets[179]. - The group has not experienced any lease modifications during the reporting period[194].

Hotel Portfolio and Management - The hotel investment portfolio includes The Langham Hong Kong, Cordis Hong Kong, and Eaton HK, focusing on high-end hotels in Asia[6] - The group currently manages 22 hotels under the Langham, Cordis, and Eaton brands across four continents, with over 20 projects in various stages of development[21] - The hotels are strategically located in vibrant commercial and leisure districts, enhancing their appeal to both local and international guests[6] - The company aims to expand its presence in key markets in Asia and North America through new hotel openings and renovations[21] - The investment strategy includes a focus on luxury and modern hospitality experiences, catering to the evolving preferences of millennial travelers[20] - The company emphasizes unique service offerings and artistic design elements to enhance guest experiences[22] - Future developments will include new luxury hotels and innovative hospitality concepts to meet market demand[23] Financial Performance - The total distributable income for the trust group for the year ended December 31, 2018, was HKD 410,491,000, a decrease from HKD 437,200,000 in 2017[39] - The board proposed a final distribution of HKD 0.105 per unit for the year ended December 31, 2018, down from HKD 0.111 per unit in 2017, maintaining a distribution rate of 100%[39] - The total distribution for the year 2018, including the interim distribution of HKD 0.090 per unit, amounted to HKD 0.195 per unit, resulting in a distribution yield of 6.7% based on the closing price of HKD 2.90 per unit on December 31, 2018[39] - The trust group's existing policy is to distribute not less than 90% of the total distributable income to unit holders[39] - The total rental income under HKFRS 15 rose by 1.3% to HKD 615.5 million, compared to HKD 607.6 million in 2017[50] - Net property income grew by 1.1% to HKD 587.0 million, while financing costs increased by 23.1% to HKD 188.8 million due to rising interest rates[50] - The overall average room revenue for the hotel portfolio increased by 11.5% year-on-year, with the Langham Hotel in Hong Kong seeing a growth of 12.4%[49] - The total value of the hotel portfolio reached HKD 20,177 million as of December 31, 2018, up from HKD 19,373 million in 2017[51] - The net asset value per unit was HKD 6.14, reflecting a discount of 52.8% compared to the closing price of HKD 2.90 on December 31, 2018[51] - The overall profit attributable to unit holders, excluding changes in fair value of investment properties and derivative financial instruments, decreased by 8.7% to HKD 311.6 million[50] Operational Efficiency and Growth - The company has entered into interest rate swap contracts totaling HKD 5 billion, effectively fixing 57.1% of its HKD 7 billion bank loans[51] - The average room revenue is expected to improve due to the completion of major transportation infrastructure projects, enhancing visitor access to Hong Kong[57] - The compound annual growth rate (CAGR) for new hotel developments is projected to slow to 3.3% over the next three years, down from 3.6% in the previous three years[58] - The company anticipates continued growth in visitor numbers to Hong Kong, albeit at a more moderate pace in 2019[56] - The fair value of investment properties recorded an increase of HKD 594.2 million in 2018, but decreased by 26.5% compared to previous years[70] Environmental Sustainability - The company achieved EarthCheck Gold Certification for its hotels, recognizing five years of sustainable development efforts[116] - The company upgraded 150 LED ceiling light panels and installed a steam recovery dishwasher at the Hong Kong East Hotel to save energy, water, and chemicals[118] - The hotels have adopted energy-saving and water-saving measures to enhance operational efficiency, including the installation of energy-efficient technologies[125] - The hotels have implemented waste reduction measures, including recycling and reusing materials such as paper, plastics, and food waste donations[122] - The hotels have initiated a "phased elimination" of single-use plastics, replacing plastic straws with biodegradable alternatives made from potato starch and using reusable metal straws[124] Corporate Governance and Management - The company is committed to maintaining high standards of corporate governance and transparency in its operations[105] - The board includes independent directors with extensive experience in finance and real estate, enhancing corporate governance[99] - The company aims to leverage the expertise of its board members, including former executives from major financial institutions, to drive strategic initiatives[101] - The trust group has established multiple corporate governance measures to address potential conflicts of interest and protect the interests of unit holders[193] - The trust and the company have adhered to all applicable governance codes and have adopted some best practices during the review year[196] Community Engagement and Employee Development - In 2018, the hotels' staff contributed approximately 1,400 hours to charitable and social projects, demonstrating a commitment to community engagement[136] - The hotels have actively engaged with stakeholders to promote sustainable practices, including a "Walk 10,000 Steps" challenge to encourage employees to walk more[127] - The hotels organized a "Health and Vitality Week" in the fourth quarter, promoting physical and mental well-being among employees[160] - The hotels have implemented various training programs, including the "First60" certification course and the "LCC" program, to develop employee skills[166] - The average training hours for employees were reduced due to the flexibility and ongoing development of the learning programs[171]