The Hongkong and Shanghai Hotels' net profit plunges 71.5% in H1

Sep. 4, 2009 (China Knowledge) - The Hongkong and Shanghai Hotels Ltd<0045>, owner and operator of the Peninsula chain of luxury hotels, recently said that it realized HK$462 million in net profit in the first half of this year.

The figure reflects a decline of 71.5% from HK$1.62 billion in the same period of last year.

Earnings per share were HK$0.32, down 71% year on year. The company has declared an interim dividend of 3 HK cents.

The Hong Kong-listed company attributed the plunge in profit to a significant drop in revenue from hotel business.

In the first six months, the hotel operator's turnover dropped 18% to HK$1.96 billion from HK$2.4 in the corresponding period of last year.

Revenue from the firm's hotel business during the same period went down 22% year on year.

The company said that the construction and outfitting of the Peninsula Shanghai Hotel is close to completion, and that the hotel will open on a trial basis in the fourth quarter of this year.

The Hongkong and Shanghai Hotels, set up in 1866, is a holding company mainly engaged in the ownership and management of prestigious hotel, commercial and residential properties in key places in Asia and the U.S. through its subsidiaries and jointly controlled entities.