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]
朗廷-SS(01270) - 2024 - 年度财报