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, 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.
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.