Unaudited half-year interim results announced by The Hongkong and Shanghai Hotels show turnover increased by 17% to HK$1.99 billion, up 17% over the same period in 2006.

Managing Director and Chief Executive Officer Clement K.M. Kwok said, "The increases in HSH's turnover and EBITDA reflect the continuing underlying strength of the operating performance and sustained demand across the Group's hotels and properties."

Profit before non-operating items increased by 22% to HK$484 million. Revaluation gains on investment properties amounted to HK$1.26 billion.

The Peninsula Hong Kong has continued to be the room rate and RevPAR leader in Hong Kong. While visitor arrivals from mainland China and regional markets have grown, visitor arrivals from long haul markets have been stagnant and as a result of the change in customer mix, the average length of stay has been shortened and the occupancy level dropped slightly.

In the USA, The Peninsula New York increased its RevPAR by 18%, with general market conditions remaining very strong in the city. Effective rate strategies at The Peninsula Chicago have enabled its ARR to be increased and the hotel to maintain its position as the room rate and RevPAR leader in Chicago.

Turnover from our residential, commercial and office properties for the first six months rose by 20% over 2006, due to sustained demand for luxury residential accommodation and the continued growth of the Hong Kong economy, both of which are supported by the strength of the financial and multi-national sectors. The high-end retail sector has remained strong in Hong Kong and Beijing, benefiting the hotel shopping arcades and other commercial spaces. Most of our investment properties, including the newly renovated Peak Tower, are fully leased.