A return to profitability for Hongkong & Shanghai Hotels — the parent firm of Peninsula Hotels — is behind the decision to significantly renovate the 287-room Peninsula Peninsula Hong Kong and the 299-room Peninsula Tokyo.
Hongkong & Shanghai Hotels confirmed the capital-expenditure projects as part of its half-year earnings results, published Wednesday.
“The board has approved renovation projects for The Peninsula Hong Kong and The Peninsula Tokyo, with an estimated budget of $2.1 billion Hong Kong dollar ($268 million). These capital expenditure programs reflect our confidence in the long-term value of our owned portfolio and our responsibility to ensure that our hotels remain relevant, distinctive and competitive for future generations,” the firm said.
The Peninsula Hong Kong, the brand's flagship hotel, first opened in 1928 and was last renovated in 2013, according to CoStar. The Peninsula Tokyo was built in 2007.
Hongkong & Shanghai Hotels' profit-and-loss account posted a HK$23 million surplus, up from a HK$289 million loss in the same period in 2025.
The company's first-half revenue was HK$3.53 billion, an 8% year-over-year increase, and earnings before interest, taxes, distribution and amortization was HK$772 million, a 20% increase from the year before.
Executives said that was “driven principally by stronger hotel performance in Greater China and the U.S., the continued ramp-up of our newer European properties, together with disciplined pricing and careful cost control.”
Hongkong & Shanghai’s CEO Benjamin Vuchot said the company's hotel performance results underlined a strengthening of the “fundamentals of our existing hotel portfolio across brand, service and revenue management, while embracing operational excellence in all our properties.”
“We are preparing the group for its next phase through disciplined capital allocation, selective reinvestment in our core assets and partnership-led opportunities,” he added.
In addition to its Hong Kong and Tokyo hotels, Peninsula Hotels has an additional 10 hotels in its global portfolio. These include three in Europe — Istanbul, London and Paris — three in the U.S. — Beverly Hills, California; Chicago and New York City — and four others in Asia— Bangkok, Beijing, Manila and Shanghai.