The Hongkong and Shanghai Hotels (HSH) reported a net loss of US$250 million in 2020 and its CEO Clement Kwok told CNBC on Wednesday that easing border restrictions and introducing vaccine passes will be essential to help revive business.
Kwok said HSH’s Peninsula Hotels in all locations, except for New York and Paris, are open but continue to operate at 20% to 40% capacity. Currently, the group whose flagship hotel is in Hong Kong, has been largely dependent on local business, promoting a series of staycations and experience packages.
“We’ve been able to maintain a certain level of business during this time,” Kwok said. “But really what we need most of all is to see an opening up.”
In Southeast Asia, Kwok said the military coup in Myanmar has stopped construction of the Peninsula Hotel in Yangon and that the group will reassess the immediate and long-term plans for the property. The budget has jumped from US$90 million to US$130 million, Kwok added.
The Peninsula New York started the year in a strong position as a RevPAR market leader in January, with robust food and beverage revenue and strong diplomatic business. However, due to the effects of the pandemic, the hotel temporarily closed on 20 March 2020 for the rest of the year. The hotel remains closed until June 1st. The property had to lay off or furlough the majority of its staff. The hotel kept all staff’s medical insurance benefits active until the end of the year to help ease the financial burden on those affected.
Kwok said the group is “full steam ahead” on planned openings in London and Istanbul. While delayed by months due to COVID, both locations remain on course for 2022 openings. While The Peninsula London is fully owned by The Hongkong and Shanghai Hotels, Limited, The Peninsula Istanbul is a joint venture with two local investors.
The Peninsula London opening 2022
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