Company Press Release: The Hongkong and Shanghai Hotels, Limited
June 23, 2000
HONG KONG -- The Hongkong and Shanghai Hotels, Limited, owners and operators of the premier Peninsula Group of
hotels, has seen its occupancy and room rates in Asia finally trend upwards. It has noted a sustainable improvement
in performance as the economies in the Asian region climb out of two years of turmoil and intra-regional traffic
increases.
The company used the hiatus, which gripped the entire industry, to realign its business, with particular emphasis
on strategy for the future. It also took advantage of the opportunity to restructure a number of its joint ventures
in Bangkok, Manila and Beijing, giving it increased equity and control over standards.
``There is enormous equity in the Peninsula brand,'' commented Rodney Smyth, the company's Director, Finance &
Corporate Services. ``For that reason, we are determined to protect it. In our view, the best way to do so, is
to have a significant stake in each property in order to exercise our philosophy and standards.''
During the economic downturn, expansion became much more of a strategic issue, when the company turned its face
to the USA where there was a boom and opportunity came knocking. The Peninsula Chicago is a key result.
Construction on the hotel commenced in July 1999, and was topped out during June. The hotel's progress will continue
on a fast track, with a soft opening scheduled for early 2001. The 339-key property, built on an existing retail
podium, is in a prominent location on Chicago's Magnificent Mile, North Michigan Avenue. It will be HSH's fourth
property in the USA.
With a target of 20-30 gateway destinations globally that could support a Peninsula, the Group prefers strategic
growth rather than a scatter-gun approach. It does not have to be everywhere at once. Tokyo is likely to be the
next destination to see a Peninsula rise; discussions with one potential partner have been particularly positive.
The Company's efforts to restructure and refocus strategically have also paid off handsomely in terms of debt-raising
capability, with a recent agreement reached to raise a HK$2.5 billion syndicated loan. This is a record amount
for the company.
Originally incorporated in 1866, The Hongkong and Shanghai Hotels, Limited, formerly The Hongkong Hotel Company,
Limited, was one of the first stocks to be listed on the Hong Kong stock exchange. Its principal business comprises
the ownership and management of prestigious hotel, commercial and residential properties in key destinations in
Asia, Australia and the USA; its hotel management arm is The Peninsula Group.
A video for Rodney Smyth's Interview is now available for viewing at http://www.deansee.com/ShanghaiHotels.html
.
For further information, please contact:
Kate Kelly
Corporate Affairs Consultant
Tel: +852-2840-7741/2523-0391
Fax: +852-2537-6665/2840-0391
E-mail: katekelly@peninsula.com
SOURCE: The Hongkong and Shanghai Hotels, Limited