Hong Kong — Hongkong & Shanghai Hotels (HSH), the parent company of The Peninsula Hotels, has approved a HK$2.1 billion (US$268 million) capital expenditure programme to renovate The Peninsula Hong Kong and The Peninsula Tokyo, directing renewed investment toward two established properties within its owned hotel portfolio.
The renovation programme was announced alongside HSH’s half-year financial results for the six months ended June 30, 2026, which showed the company returning to profitability after recording a loss in the same period a year earlier. The planned investment covers the 287-room Peninsula Hong Kong and the 299-room Peninsula Tokyo, with the two properties accounting for most of HSH’s HK$2.5 billion in outstanding capital commitments.
The decision places the two hotels within HSH’s next phase of capital allocation as the group strengthens its existing portfolio. The company said the capital expenditure programmes reflect its confidence in the long-term value of its owned assets and its focus on maintaining the relevance, distinctiveness and competitiveness of its hotels.
The Peninsula Hong Kong, the group’s flagship property, first opened in 1928 and was last renovated in 2013. The Peninsula Tokyo, located in Hibiya, opened in 2007. HSH has not announced a start date for either renovation, whether The Peninsula Tokyo will fully close during the works, or a reopening schedule.
For The Peninsula Hong Kong, preserving the building’s heritage and character is a key consideration. HSH also plans to minimise disruption during the renovation works, although the timeline has not yet been finalised.
The investment follows an improvement in HSH’s financial performance during the first half of 2026. The company recorded a HK$23 million profit attributable to shareholders, compared with a HK$289 million loss in the first half of 2025. Excluding property revaluation gains and other non-recurring items, the group’s underlying loss narrowed from HK$216 million to HK$17 million.
Group revenue from operations, excluding the result from the sale of The Peninsula London Residences, increased 8% year on year to HK$3.53 billion. Earnings before interest, taxes, distribution and amortization reached HK$772 million, representing a 20% increase from the previous year. HSH attributed the improvement principally to stronger hotel performance in Greater China and the United States, the continued ramp-up of newer European properties, disciplined pricing and careful cost control.
Greater China was the group’s strongest-performing region during the period. The region, which includes The Peninsula Hong Kong, The Peninsula Shanghai and The Peninsula Beijing, generated revenue of HK$1.65 billion, up 13% year on year. Earnings before interest, taxes, distribution and amortization increased 28% to HK$548 million, while revenue per available room rose 29% to HK$3,006.
The stronger performance in Greater China provides the operating backdrop for HSH’s continued investment in its existing hotel assets. The company’s leadership has highlighted the strengthening fundamentals of its portfolio across brand, service and revenue management, alongside operational excellence across its properties.
HSH Chief Executive Officer Benjamin Vuchot said the group is preparing for its next phase through disciplined capital allocation, selective reinvestment in core assets and partnership-led opportunities. The approved renovation budget for The Peninsula Hong Kong and The Peninsula Tokyo forms part of this capital allocation approach.
Performance across other markets was mixed during the first half. Revenue in Asia excluding Greater China declined 4% to HK$741 million, as demand in Japan eased from elevated levels recorded in the previous year. Higher occupancy at The Peninsula Bangkok and The Peninsula Manila helped offset part of the decline.
In Europe, revenue per available room increased 11%, supported by the growing market presence of The Peninsula London and pricing gains in Paris. The Peninsula Istanbul also made progress during the period, despite geopolitical uncertainty in the wider Middle East affecting travel sentiment.
HSH operates 12 Peninsula hotels across Asia, Europe and the United States. Beyond the properties in Hong Kong and Tokyo, its portfolio includes hotels in Bangkok, Beijing, Manila and Shanghai in Asia; Istanbul, London and Paris in Europe; and Beverly Hills, Chicago and New York City in the United States.
The group’s broader property performance also influenced its first-half operating position. Across its commercial properties, including The Repulse Bay residential complex, occupancy improved to 97%. The Arcades recorded improved luxury footfall and tenant demand, while office occupancy declined to 72% amid continued weakness in Hong Kong’s office leasing market.
Looking ahead, HSH expects hotel demand to remain resilient during the second half of the year, supported by continued international travel and demand for personalised luxury experiences. At the same time, the company identified geopolitical tensions, currency volatility, rising operating costs and shorter booking windows as factors affecting hotel operations.
The renovation programme therefore adds a significant capital commitment to HSH’s existing portfolio while the group continues to manage performance across its international hotel and commercial property assets. With no renovation timeline announced for either The Peninsula Hong Kong or The Peninsula Tokyo, the HK$2.1 billion programme remains focused on the two established properties within HSH’s owned portfolio.
The renovation programme was announced alongside HSH’s half-year financial results for the six months ended June 30, 2026, which showed the company returning to profitability after recording a loss in the same period a year earlier. The planned investment covers the 287-room Peninsula Hong Kong and the 299-room Peninsula Tokyo, with the two properties accounting for most of HSH’s HK$2.5 billion in outstanding capital commitments.
The decision places the two hotels within HSH’s next phase of capital allocation as the group strengthens its existing portfolio. The company said the capital expenditure programmes reflect its confidence in the long-term value of its owned assets and its focus on maintaining the relevance, distinctiveness and competitiveness of its hotels.
The Peninsula Hong Kong, the group’s flagship property, first opened in 1928 and was last renovated in 2013. The Peninsula Tokyo, located in Hibiya, opened in 2007. HSH has not announced a start date for either renovation, whether The Peninsula Tokyo will fully close during the works, or a reopening schedule.
For The Peninsula Hong Kong, preserving the building’s heritage and character is a key consideration. HSH also plans to minimise disruption during the renovation works, although the timeline has not yet been finalised.
The investment follows an improvement in HSH’s financial performance during the first half of 2026. The company recorded a HK$23 million profit attributable to shareholders, compared with a HK$289 million loss in the first half of 2025. Excluding property revaluation gains and other non-recurring items, the group’s underlying loss narrowed from HK$216 million to HK$17 million.
Group revenue from operations, excluding the result from the sale of The Peninsula London Residences, increased 8% year on year to HK$3.53 billion. Earnings before interest, taxes, distribution and amortization reached HK$772 million, representing a 20% increase from the previous year. HSH attributed the improvement principally to stronger hotel performance in Greater China and the United States, the continued ramp-up of newer European properties, disciplined pricing and careful cost control.
Greater China was the group’s strongest-performing region during the period. The region, which includes The Peninsula Hong Kong, The Peninsula Shanghai and The Peninsula Beijing, generated revenue of HK$1.65 billion, up 13% year on year. Earnings before interest, taxes, distribution and amortization increased 28% to HK$548 million, while revenue per available room rose 29% to HK$3,006.
The stronger performance in Greater China provides the operating backdrop for HSH’s continued investment in its existing hotel assets. The company’s leadership has highlighted the strengthening fundamentals of its portfolio across brand, service and revenue management, alongside operational excellence across its properties.
HSH Chief Executive Officer Benjamin Vuchot said the group is preparing for its next phase through disciplined capital allocation, selective reinvestment in core assets and partnership-led opportunities. The approved renovation budget for The Peninsula Hong Kong and The Peninsula Tokyo forms part of this capital allocation approach.
Performance across other markets was mixed during the first half. Revenue in Asia excluding Greater China declined 4% to HK$741 million, as demand in Japan eased from elevated levels recorded in the previous year. Higher occupancy at The Peninsula Bangkok and The Peninsula Manila helped offset part of the decline.
In Europe, revenue per available room increased 11%, supported by the growing market presence of The Peninsula London and pricing gains in Paris. The Peninsula Istanbul also made progress during the period, despite geopolitical uncertainty in the wider Middle East affecting travel sentiment.
HSH operates 12 Peninsula hotels across Asia, Europe and the United States. Beyond the properties in Hong Kong and Tokyo, its portfolio includes hotels in Bangkok, Beijing, Manila and Shanghai in Asia; Istanbul, London and Paris in Europe; and Beverly Hills, Chicago and New York City in the United States.
The group’s broader property performance also influenced its first-half operating position. Across its commercial properties, including The Repulse Bay residential complex, occupancy improved to 97%. The Arcades recorded improved luxury footfall and tenant demand, while office occupancy declined to 72% amid continued weakness in Hong Kong’s office leasing market.
Looking ahead, HSH expects hotel demand to remain resilient during the second half of the year, supported by continued international travel and demand for personalised luxury experiences. At the same time, the company identified geopolitical tensions, currency volatility, rising operating costs and shorter booking windows as factors affecting hotel operations.
The renovation programme therefore adds a significant capital commitment to HSH’s existing portfolio while the group continues to manage performance across its international hotel and commercial property assets. With no renovation timeline announced for either The Peninsula Hong Kong or The Peninsula Tokyo, the HK$2.1 billion programme remains focused on the two established properties within HSH’s owned portfolio.
