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Group set to keep climbing

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LUXURY hotel and property group Hongkong and Shanghai Hotels looks set to repeat last year's healthy profit growth this year.

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Analysts were generally optimistic on the group's prospects, with 1995 growth forecasts ranging from 25 to 45 per cent.

Net profit for last year gained 23 per cent on 1993, totalling $512 million.

Analysts expect demand for hotel rooms to increase with the flat inventory of hotel rooms, while earnings from the property division should remain steady.

Hotels accounted for 43 per cent of operating profit last year, with property providing 51 per cent.

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The flagship Peninsula, which was disrupted by the extension project last year, is likely to pour in more revenue this year, according to Douglas Webster, director of finance and corporate services.

Mr Webster said total revenue from the Peninsula last year was more or less the same as in 1993, at $293 million.

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