HK&S HOTELS: High-end customer return is slow, cautiously optimistic for the second half of the year

The newly appointed CEO of HK&S HOTELS (00045.HK), Benjamin Vuchot, stated that considering the pressure on hotel room rates, the hotel business in Hong Kong was stable in the first half of the year, and he felt satisfied with the reasonable performance. In the second half of the year, they will fully leverage opportunities in dining and festive events. Currently, hotel booking data is encouraging, and they launched early bird sales for mooncakes at the end of July, which also showed promising sales. He expressed a cautiously optimistic outlook for the second half of the year, believing that performance could exceed internal expectations.

Benjamin Vuchot noted that the luxury market has yet to show signs of recovery. Hong Kong has traditionally benefited from high-spending North American tourists, but the recovery of this business is challenging. Additionally, the speed of high-end tourists from mainland China returning to Hong Kong is not as fast as before. He pointed out that trade and tariff uncertainties affect travelers' sentiments, and more stability is needed to assess when the market can recover. However, he emphasized that there has been strong growth in high-end guests from the Middle East, and they hope to seize this opportunity. The group will continue to diversify and expand its products, focusing on local and other national travelers.

Previously, rumors about an earthquake in Japan circulated widely. Benjamin Vuchot stated that, like other peers, they were affected by the rumors, but bookings from the Greater China region have rebounded, and he believes that Japan's performance will be stable in the second half of the year