Peninsula owner HSH swings to profit, backs HK$2.1bn Hong Kong-Tokyo renovation

The Hongkong and Shanghai Hotels, Limited (HSH), which owns and operates the Peninsula hotel group, swung back to profit in the six months to 30 June 2026, according to interim results the company announced on 8 August. Profit attributable to shareholders came to HK$23 million, reversing a HK$289 million loss in the same period a year earlier.

Combined revenue across the group's hotels rose 8% year on year to HK$3,951 million, or HK$4,346 million including its residences business, HSH said. Combined EBITDA climbed 22% to HK$853 million.

"The Hongkong and Shanghai Hotels, Limited delivered an improved first-half performance in 2026, returning to profitability and recording stronger revenue, EBITDA and key operating metrics," chief executive Benjamin Vuchot said in the results statement.

Alongside the results, HSH's board approved renovation projects for two of the group's flagship properties, The Peninsula Hong Kong and The Peninsula Tokyo, with a combined estimated budget of HK$2.1 billion, the company said. HSH did not disclose how the budget splits between the two hotels, or give a start date for either project.

The half also carried lighter milestones: The Peninsula Chicago marked its 25th anniversary in June, and The Peninsula Manila its 50th, according to the release.

The renovation line is the more consequential one for Japan. Peninsula Tokyo sits in one of the country's tightest luxury hotel markets, where a weak yen has drawn record numbers of high-spending visitors and rivals from Aman to Bulgari have opened new flagships in the capital in recent years. Committing capital to renovate an established asset, rather than only building new ones, suggests HSH is reading Tokyo's current pricing power as durable — a bet that only pays off if the room-rate premium holds once the scaffolding comes down.