Hotel Group Monitors Middle East Impact on Bookings

The CEO of a major hotel group, Hu Weicheng, stated that the company is closely monitoring the impact of flight cancellations on room bookings due to the Middle East situation. According to RTHK, it is too early to assess the overall impact on the tourism and hotel industries. However, the group is confident in mitigating geopolitical risks through market strategies and its diverse hotel network. Hu mentioned at a performance briefing that the group holds significant local assets, including residential properties and the Peak Tram, which help reduce the impact of Middle Eastern geopolitical issues on profits. The group will not distribute a final dividend. Management noted that dividend distribution depends on factors such as profitability, current and future cash flow, debt levels, and financial costs, emphasizing regular reviews. Capital expenditure is expected to be 4% of revenue this year, focusing on the 100th anniversary of the Peninsula Hotel in Hong Kong and renovations in Tokyo and Paris. The group also outlined its future strategic direction, with half of its 12 Peninsula Hotels located in the Asia-Pacific region. By 2035, the business aims to significantly expand its coverage, achieving a more balanced distribution across the Asia-Pacific, Americas, and Europe, Middle East, and Africa regions.