HK&S HOTELS(HK:00045)2023-03-31 09:17Financial Performance - The company reported a significant financial performance in 2022, with a total revenue of 675 million GBP from the refinancing of the Peninsula Hotel project in London[19]. - Total revenue increased by 18% to HKD 4,587 million in 2022, compared to HKD 3,885 million in 2021[25]. - Revenue from the hotel segment rose by 26% to HKD 3,384 million, despite a decline in Hong Kong and mainland China due to COVID-19 restrictions[30]. - Adjusted EBITDA before interest, tax, depreciation, and amortization increased by 13% to HKD 518 million, up from HKD 457 million in 2021[25]. - The company reported a net loss attributable to shareholders of HKD 488 million, a significant increase of 307% from a loss of HKD 120 million in 2021[25]. - Cash interest coverage ratio decreased by 51% to 0.8x, down from 1.6x in the previous year[25]. - Total assets increased by 2% to HKD 56,581 million, compared to HKD 55,685 million in 2021[25]. - The company’s net external debt rose by 13% to HKD 14,607 million, up from HKD 12,900 million in 2021[25]. - The average interest rate increased to 2.2%, up from 1.5% in the previous year[25]. - The company reported a net loss attributable to shareholders of HKD 488 million for the year ended December 31, 2022, compared to a loss of HKD 205 million in the previous year[34]. Sustainability and Development - The company is committed to enhancing its sustainability vision and strategies, as outlined in its annual report and sustainability report[2]. - The company plans to continue monitoring its sustainable development performance and implement measures to achieve long-term sustainability goals[26]. - The company remains committed to its "Sustainable Vision 2030" strategy to address climate change and sustainability issues[42]. - The company is focusing on sustainable development through its "2030 Vision," addressing key issues such as guest experience, employee development, and community enrichment[62]. - The company has established a database to strengthen connections with business stakeholders in the markets where its projects are located[193]. - The company actively collaborates with non-profit organizations and academic institutions to address sustainability issues and share experiences[192]. - The company has set overall goals to address greenhouse gas emissions and water efficiency as part of its "2030 Vision" sustainability strategy[192]. - The company has received recognition as the Best Sustainable Company/Organization at the 2022 Best Corporate Governance and ESG Awards[195]. Employee and Operational Initiatives - The company successfully implemented the "Work Improvement Teams" initiative, receiving over 500 innovative ideas from global business units, with winners announced on January 16, 2023[22]. - The company has implemented the "Executive Development Programme" and "Emerging Managers Programme" to enhance employee skills and prepare future leaders[60]. - Talent retention strategies include flexible work arrangements and competitive salary increases to attract and retain staff[59]. - The company is addressing labor shortages in the hospitality industry, particularly in the U.S. and France, by exploring best practices for employee recognition and retention[191]. - The company has successfully collected hundreds of ideas through hackathons and innovation programs to enhance operational efficiency and company culture[191]. - The company continues to focus on enhancing customer experience through advanced room technology and personalized services[57]. Market and Business Outlook - The company is optimistic about the long-term value of its properties in prime locations despite a weak business environment[42]. - The company anticipates a gradual recovery in business as restrictions are lifted in Hong Kong and mainland China[42]. - The company is actively managing risks related to labor shortages, inflation, and geopolitical tensions[58]. - The company is monitoring geopolitical uncertainties, including U.S.-China relations and labor shortages in the UK, which may impact operations[64]. - The company is optimistic about future business prospects as international travelers return to Hong Kong[96]. Awards and Recognition - The company received recognition from Travel + Leisure as one of the "World's 500 Greatest Hotels" in 2022[69]. - The Hong Kong Peninsula Hotel ranked 5th in the Asia's Best Hotels Awards and received multiple accolades for its facilities, including 4th for Best Hotel Pool and 6th for Best Spa[195]. - The Peninsula Hotels received multiple prestigious awards in 2022, including the Forbes Travel Guide Five-Star Award for several locations[196]. - The Bangkok Peninsula Hotel ranked 5th in the 2022 World's 500 Best Hotels and was awarded the Best Business Hotel by TTG Asia[197]. - The New York Peninsula Hotel was recognized as the 7th Best Hotel in Midtown Manhattan by U.S. News & World Report[197]. - The Beverly Hills Peninsula Hotel was ranked 9th among the 15 Best Hotels in the Greater Los Angeles Area by Travel Leisure[198]. - The Paris Peninsula Hotel received a Michelin Two-Star rating for its restaurant L'Oiseau Blanc[198]. - The Manila Peninsula Hotel was awarded the 6th Best Hotel in the Philippines by DestinAsian Readers' Choice Awards[197]. - The Chicago Peninsula Hotel was ranked 2nd among the 10 Best Hotels in Chicago by Travel Leisure[197]. Property and Investment Developments - The company has a total floor area of 1,058,455 square feet for its commercial properties in Hong Kong, demonstrating its significant real estate holdings[14]. - The company has maintained a 100% ownership stake in several key properties, including the Peninsula Hotels in Bangkok, Tokyo, and Manila[10]. - The company’s capital expenditure for new projects amounted to HKD 2,625 million, reflecting ongoing investments in expansion[35]. - The London Peninsula Hotel project has a revised budget of GBP 1.02 billion, with over two-thirds of luxury residential apartments already sold[100]. - The Istanbul Peninsula Hotel opened on February 14, 2023, with optimistic long-term prospects for the new property[44]. - The company plans to invest HKD 3.9 billion over the next two years for new hotel developments in London and Istanbul[55]. - The company is currently developing two new hotels, indicating ongoing market expansion efforts[141]. Customer Engagement and Marketing - The company continues to enhance user experience on its e-commerce platform, focusing on smoother room and dining reservation processes[190]. - The "Life Lived Best" initiative was launched, providing a health and wellness concierge service available 24/7 for guests at all Peninsula hotels[190]. - The company is actively promoting the "Art in Resonance" global art program, collaborating with innovative artists worldwide to create immersive art experiences for hotel guests[190]. - The company continues to focus on enhancing its brand image through new marketing materials and collaborations, aiming to create meaningful and engaging brand experiences[190].