Hotel Online Special Report 
Peninsula Group of Hotels Finally Seeing Occupancy and Room Rates in Asia Trending Upwards HONG KONG, June 22, 2000 – 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.
Contact: Kate Kelly Corporate Affairs Consultant Tel: +852-2840-7741/2523-0391 [email protected] Also See The Hongkong and Shanghai Hotels, Limited Report on Operations of the Peninsula Hotels / March 1999 Year-to-date Occupancy at The Peninsula Group Reflects a Steadier Course for 2000 / May 2000